S. 50 : Capital gains – Depreciable assets – Block of assets -Rate of tax -Rate of tax of would be in terms of section 112 at rate of 20 per cent- Writ petition against order of ITAT Special Bench, SKF India Ltd v. Dy. CIT (2025) 210 ITD 1 / 121 ITR 307 (SB)(Mum)(Trib.)-Alternative remedy – Interpretation of sections 50 and 112-Writ petition dismissed leaving merits of controversy open. [S. 2(11), 32 ,50, 112 , 260A , Art. 226]
Revenue challenged Special Bench order in SKF India Ltd v. Dy. CIT (2025) 210 ITD 1 / 121 ITR 307 (SB) (Mum.)(Trib.) holding that gains computed as short-term capital gains under section 50 on transfer of depreciable long-term capital assets would still be taxable at rate applicable to long-term capital gains under section 112. Though Court held that writ petition was not barred merely because final regular Bench order dated 25-2-2025 was not separately challenged, it declined to entertain writ petition as challenge was essentially to legal interpretation by Tribunal, which could be effectively agitated in appeal under section 260A. Mere alleged error of law or interpretation does not amount to lack of jurisdiction or breach of natural justice so as to invoke extraordinary writ jurisdiction. Writ petition dismissed leaving merits of controversy open. (WP L. No. 31106 of 2025 dt. 16-3-2026)
PCIT v. SKF India Ltd. (Bom.)(HC) www.itatonlinee.org
[Coram : Hon’ble Shri Justice B. P. Colabawalla & Hon’ble Shri Justice Firdosh P. Pooniwalla]