SUDESH SYNTHETIC MILLS PRIVATE LIMITED,SURAT vs. DCIT, CIRCLE-2(1)(2), SURAT

ITA 739/SRT/2024Status: DisposedITAT Surat10 September 2026AY 2016-1722 pages
AI SummaryPartly Allowed

What were the facts?

The assessee sold a factory land and building, bifurcating the sale consideration and treating land as long-term capital asset and building as short-term depreciable asset. The AO disagreed with the bifurcation, treating the entire sale consideration as relating to land and recomputing the capital gains.

What did the Tribunal hold?

The Tribunal held that the opening WDV of the building block was correctly claimed by the assessee as per Section 50 of the Act. The Tribunal also allowed the deduction of brokerage expenses incurred for the sale of the property.

What were the issues?

Whether the sale consideration of the property should be bifurcated between land and building, and whether the WDV of the building and brokerage expenses are allowable deductions for capital gains computation.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 139,Section 142(1),Section 50,Section 48,Section 133(6),Section 194H

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Shri Ramesh Malpani, CA & AR
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 18.06.2026Pronounced: 10.09.2026

Per B.M. Biyani, A.M.: Feeling aggrieved by the order of first appeal dated 30.05.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 24.12.2018 passed by learned Deputy Commissioner of Income-tax, Circle – 2(1)(2), Surat [“Ld. AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2016-17, the assessee has filed this appeal.

Sudesh Synthetic Mills Private Limited ITA No. 739/SRT/2024 – AY 2016-17

2.

The background facts leading to pres

The order continues below.

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