Allowing the appeal of the assessee the Tribunal held that ; cost for acquiring capital WIP, it was a valuable ‘property’ and, hence, in nature of a ‘capital asset’ therefore, when assessee sold plant and machinery along with capital WIP, cost incurred on capital WIP was required to be reduced as ‘cost of acquisition’ while arriving at taxable amount of capital gain/loss within meaning of S.50 .Accordingly revisional order was set aside. ( AY.2012-13)
Titagarh Industries Ltd. v. DCIT (2018) 171 ITD 559/ 170 ITD 361 (Kol) (Trib)
S. 263 : Commissioner – Revision of orders prejudicial to revenue – Sale of plant and machinery along with capital WIP, cost incurred on capital WIP was required to be reduced as ‘cost of acquisition’ while arriving at taxable amount of capital gain-Revision is held to be not valid [ S. 2(14),50, 74 ]