Law:

Section:

Section 50, read with section 10B, of the Income-tax Act, 1961 - Capital gains - Computation in case of depreciable assets - Assessment year 1993-94 - Whether on expiry of tax holiday period specified in section 10B undertaking comes in automatically for regular assessment and income chargeable has to be computed to tax in accordance with provisions contained therein - Held, yes - Whether, therefore, on expiry of period mentioned under section 10B, block of assets, viz., plant and machineries of industry are available for working out relief under section 50(2), and on mere score that assessee was once 100 per cent export undertaking, it could not be denied of benefit otherwise available to it on block of assets - Held, yes [In favour of assessee] Words and Phrases : 'Business of export undertaking' as occurring in section 10B of the Income-tax Act, 1961 FACTS The assessee, among several business, had an export oriented unit. On the expiry of the term of the benefit available to 100 per cent export oriented unit under section 10B during the assessment year 1993-94, on 2-7-1992, the assessee transferred the said unit to its closely held company. On a comparison of the value of the assets as per the assessee's balance sheet as on 2-7-1992 and the value of the assets adopted by the closely held company, the Assessing Officer found that there was difference in value of the assets to the extent of Rs. 71,42,904. The Assessing Officer completed the assessment treating the difference as short-term capital gains, the assets being block of assets transferred by the assessee. On appeal, the Commissioner (Appeals) held that the assessee's businesses numbering seven had to be treated as a composite business and hence, it would be incorrect to segregate this unit for the purpose of calculating the depreciation. Applying the concept of block of assets for the purpose of determining depreciation, the Commissioner (Appeals) held that the view of the officer in determining the short-term capital gains as arising out of the transfer of the assets from export oriented unit was not correct. He further held that when the business of the assessee was taken as a whole and the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492