Deeming fiction under s. 50 is restricted to the chargeability of gain as short-term capital gain but the asset remains a long-term capital asset and does not become a short-term capital asset by virtue of S. 50. Though the assessee is precluded from making the claim without making any claim in the return of income or revised return before the AO, the CIT(A) should have granted the claim of the assessee under S. 54. The issue is restored back to the AO to compute the income of the assessee considering the provisions of s. 41(2) and S. 50 and thereafter allow the claim of the assessee under s. 54F if other conditions are satisfied. (SMC) (AY. 2014-15)
Sonia Pathak Khanna v. ITO (2024) 230 TTJ 828 / 240 DTR 297 / 38 NYPTTJ 914/ 164 taxmann.com 607 (Mum) (Trib)
S. 50 : Capital gains-Depreciable assets-Block of assets-The profit or loss on this property is required to be computed under the provisions of ss. 41(2) and 50-More than 36 months-Entitle to exemption u/s 54F [S. 41(2), 54F]