NAWAB PASHASAHEB JAMADAR,LATUR vs. THE INCOME TAX OFFICER, WARD-1, LATUR
What did the Tribunal hold?
The Tribunal held that the under-construction building, not being used for business, could not be included in the block of assets. However, the denial of exemption under Section 54/54F at the threshold was incorrect. The matter was remanded to the AO to examine the exemption claim.
What were the facts?
The assessee, a doctor, transferred his hospital building which was partly residential. He claimed depreciation on a new hospital-cum-residential building under construction, treating it as part of the block of assets. The AO treated the gain on the old building as short-term capital gain under Section 50(2) and denied exemption under Section 54.
What were the issues?
Whether an under-construction building not yet put to use can be included in the block of assets for depreciation and capital gains computation, and whether exemption under Section 54/54F is available when Section 50 is attracted.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SMC BENCH, PUNE
Before: SHRI R.S. SYAL
आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: अपीऱधर्थी / The Appellant; 1. प्रत्यर्थी / The Respondent; 2. 3. The Pr.CIT concerned 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, SMC, Pune / DR, ITAT, Pune 5. गार्ड फाईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune
Date 1. Draft dictated on 05-10-2023 Sr.PS 2. Draft placed before author 06-10-2023 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *
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