What is CIT v. Ace Builders (P) Ltd. authority for?

The deeming fiction in Section 50, which treats capital gains from depreciable assets as short-term, applies only for the purpose of computing capital gains under that section. For other provisions, such as set-off of losses under Section 74 or deductions under Section 54E/54EC, the asset's original character (long-term or short-term) is to be considered.

How many judgments cite CIT v. Ace Builders (P) Ltd.?

88 judgments on BharatTax cite CIT v. Ace Builders (P) Ltd. (281 ITR 210), spanning 2011 to 2026.

Which sections of the Income Tax Act does CIT v. Ace Builders (P) Ltd. come up under?

It is most often cited in judgments turning on Section 50, Section 40(a)(ia), Section 115JB, Section 48, Section 49, Section 112.

CIT v. Ace Builders (P) Ltd. (281 ITR 210)

Shree Vaidehi Impex Pvt. Ltd., Ahmedabad vs. The Dy.CIT, Circle-4(1)(1), Ahmedabad

Accordingly, the appeal filed by the assessee is dismissed

ITA 273/AHD/2026[2016-17]Status: DisposedITAT Ahmedabad21 Apr 2026AY 2016-17

Bench: Shri Siddhartha Nautiyal & Shri Narendra Prasad Sinha

For Appellant: Shri Hardik Vora, AR & Ms. Kaushani ShahFor Respondent: Shri C Dharani Nath, Sr. DR

Section 112Section 143(3)Section 50Section 50C

…that the central issue revolves around the interpretation of section 50 of the Act and its interaction with other provisions of the Act. Relying on binding judicial precedents such as the decision of the Hon’ble Bombay High Court in CIT vs. Ace Builders Ltd. (281 ITR 410) and tribunal decisions viz Mahindra Freight Carriers and Prabodh Investment & Trading Co., the CIT(Appeals) held that the deeming fiction under section 50 of the Act is restricted only to the computation mechanism under sections 48 and 49 of the Act and does not extend to determine the nature of capital gain for all purposes of the Act. The CIT(…

Mr. Dollar Chunilal Modi, Mumbai vs. Income Tax Officer Ward 42(1), Mumbai

In the result, appeal filed by assessee is allowed for statistical purposes

ITA 7189/MUM/2025[2013-14]Status: DisposedITAT Mumbai19 Jan 2026AY 2013-14

Bench: Smt. Beena Pillai ()**

Section 139Section 143(1)Section 143(2)Section 147Section 148Section 50Section 54F

…assessee placed reliance on the decisions of *Hon'ble Supreme Court* in case of *CIT v. V.S. Dempo Company Ltd.*, reported in *(2016) 366 ITR 635* as well as on the decision of *Hon'ble Bombay High Court* in case of *CIT v.Ace Builders Pvt. Ltd*.,reported in *281 ITR 210*, in support of its claim that exemption under sections 54E/54F is available even in respect of capital gains arising from depreciable assets. - **3.2.** The Ld.CIT(A),however,noted that the assessee had not claimed the exemption under section 54F in the return of income originally filed.On this basis,the Ld.CIT(A) rejected the assessee's submiss…

Reliance Power Limited, Mumbai vs. Deputy Commissioner of Income Tax Circle 15(3)(1), Mumbai

In the result, ground of appeal raised by assessee is allowed

ITA 1348/MUM/2023[2013-2014]Status: DisposedITAT Mumbai14 Oct 2025AY 2013-2014

Bench: Shri Pawan Singh& Shri Omkareshwar Chidara(Physical Hearing) Dcit – 15(3)(1), Mumbai Reliance Power Limited Room No. 460, 4Th Floor, H-Block, 1St Floor, Dhirubhai Ambani Vs Aayakar Bhavan, M.K. Road, Knowledge City, Koperkhairane, Mumbai – 400020] Navi Mumbai-400710 [Pan: Aaacr2365L] Appellant / Revenue Respondent / Assessee Reliance Power Limited Dcit – 15(3)(1), Mumbai Room No. 460, 4Th Floor, Aayakar Reliance Centre, Ground Floor, 19 Vs Walchand Hirachand Marg, Bhavan, M.K. Road, Ballard Estate, Mumbai – 400001. Mumbai – 400020] [Pan: Aaacr2365L] Appellant / Assessee Respondent / Revenue

Section 14ASection 254(1)Section 50

…applicable on capital gain arising on sale of depreciable asset under section ITA Nos. 890 1348/Mum/2023 & C.O. 71/Mum/2023 Reliance Power Ltd. 50, by referring and relying upon the decision of jurisdiction High Court in CIT vs Ace Builders (P) Ltd. (2025) 281 ITR 210 and the decision of Hon’ble Apex Court in CIT vs Dempo Co. Ltd. 387 ITR 354, has held that deeming fiction is only for the purpose of section 50 and all for other provisions including section 74, the asset remains a long term capital asset. The ld. AR of the assessee prayed that assessee is eligible to set off long term capital losses agains…

Tata Communications Limited, Mumbai vs. Principle Commissioner of Income Tax, Mumbai

In the result, the question of law referred to the Special Bench is answered in favour of the assessee

ITA 3515/MUM/2025[2018-19]Status: DisposedITAT Mumbai25 Sept 2025AY 2018-19

Bench: Shri Saktijit Dey & Shri Arun Khodpiatata Communications Limited Pr. Cit, Videsh Sanchar Bhavan, Mumbai-1 Vs. M. G. Road, Fort, Mumbai-400 001 Pan/Gir No. Aaacv 2808 C (Appellant) : (Respondent) Appellant By : Shri J. D. Mistri Respondent By : Shri Ritesh Misra, Cit Dr Date Of Hearing : 25.09.2025 Date Of Pronouncement : 25.09.2025 O R D E R Per Saktijit Dey: The Present Appeal, At The Instance Of The Assessee, Assails Order Dated 21.03.2025, Passed U/S. 263 Of The Income Tax Act, 1961 (‘The Act’ For Short), By Learned Principal Commissioner Of Income Tax (‘Ld. Pcit’ For Short), Pertaining To The Assessment Year (A.Y.) 2018-19. 2. Though The Assessee Has Raised Multiple Grounds, Both On Jurisdictional Issues As Well As On Merits, However, There Is Consensus Between The Parties That The Appeal Can Be Decided On Merits, In Which Event, There Is No Need To Go Into Various Other Issues Raised In Appeal.

For Appellant: Shri J. D. MistriFor Respondent: Shri Ritesh Misra, CIT DR

Section 112Section 143(3)Section 263Section 50

…r of capital assets on which depreciation has been allowed in the first year itself and which is deemed as short term capital gain under Section 50 of the Income Tax Act relying upon the judgment of this Court in the case of CIT V/s. Ace Builders (P.) Limited(281 ITR 210) even though the said decision was rendered in the context of eligibility of deduction under Section 54E”. The Hon’ble High Court again followed the principle laid in case of CIT vs Ace Builders Pvt Ltd (supra) and observed and held that under:- 3. On further appeal, the Tribunal by the impugned order has allowed the claim of the respondent - ass…

Dy. Commissioner of Income Tax, Central Circle-3(3), Mumbai vs. Phulchand Exports Private Limited, Mumbai

In the result, appeals of the Revenue in ITA No

ITA 3103/MUM/2025[2019-20]Status: DisposedITAT Mumbai04 Aug 2025AY 2019-20

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Shankarlal Jain & Shri Satish KumarFor Respondent: Shri R.A Dhyani, (CIT-DR)

Section 132Section 143(3)Section 14ASection 153ASection 36(1)(iii)

…IN THE INCOME-TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 2415/MUM/2025 (A.Y. 2018-19) Phulchand Exports Private Limited v/s. Assistant Commissioner of Income Tax, Central Circle – 3(3), Kautilya Bhavan, Bandra Kurla Complex, Bandra East, Mumbai – 400 051, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACP2529C Appellant/अपीलार्थी .. Respondent/प्रतिवादी ITA No. 3102/MUM/2025 (A.Y. 2018-19) ITA No. 3103/MUM/2025 (A.Y. 2019-20) Deputy Commissioner of Income Tax, Central Circle – 3(3),404, 4th Floor, Kautilya Bhavan,…

Dy. Commissioner of Income Tax, Central Circle- 3(3), Mumbai vs. Phulchand Exports Private Limited, Mumbai

In the result, appeals of the Revenue in ITA No

ITA 3102/MUM/2025[2018-19]Status: DisposedITAT Mumbai04 Aug 2025AY 2018-19

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Shankarlal Jain & Shri Satish KumarFor Respondent: Shri R.A Dhyani, (CIT-DR)

Section 132Section 143(3)Section 14ASection 153ASection 36(1)(iii)

…IN THE INCOME-TAX APPELLATE TRIBUNAL“C” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 2415/MUM/2025 (A.Y. 2018-19) Phulchand Exports Private v/s. Assistant Commissioner Limited of 2nd Floor, West Wing, Electric बनाम Income Tax, Central Circle Mansion, Appasaheb Marathe 3(3), Kautilya Bhavan, Bandra Marg, Worli, Prabhadevi Kurla Complex, Bandra East, Mumbai -400 025, Mumbai 400 051, Maharashtra Maharashtra -400 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACP2529C Appellant/अपीलार्थी .. Respondent/प्रतिवादी ITA No. 3102/MUM/2025 (A.Y. 2018-19) ITA No. 3103…

Phulchand Exports Pvt Ltd, Mumbai vs. Asst. Commissioner of Income Tax Central Circle 3(3), Mumbai

In the result, appeals of the Revenue in ITA No

ITA 2415/MUM/2025[2018-19]Status: DisposedITAT Mumbai04 Aug 2025AY 2018-19

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Respondent byFor Respondent: Shri Shankarlal Jain & Shri Satish Kumar

Section 132Section 143(3)Section 14ASection 153ASection 36(1)(iii)

…IN THE INCOME-TAX APPELLATE TRIBUNAL“C” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 2415/MUM/2025 (A.Y. 2018-19) Phulchand Exports Private v/s. Assistant Commissioner Limited of 2nd Floor, West Wing, Electric Mansion, Appasaheb Marathe Marg, Worli, Prabhadevi Mumbai -400 025, Maharashtra बनाम Income Tax, Central Circle 3(3), Kautilya Bhavan, Bandra Kurla Complex, Bandra East, Mumbai - 400 051, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACP2529C Appellant/अपीलार्थी .. Respondent/प्रतिवादी ITA No. 3102/MUM/2025 (A.Y. 2018-19) ITA No. 3103/MU…

Samir Narain Bhojwani, Mumbai vs. DCIT 4(2)(1), Mumbai

Appeal of the assessee is allowed for statistical purposes and the appeal of the revenue is dismissed

ITA 261/MUM/2025[2022-23]Status: DisposedITAT Mumbai26 Jun 2025AY 2022-23

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

For Appellant: Shri Yogesh Thar & Chaitanya

Section 112Section 194CSection 250Section 37(1)Section 40Section 50

…which depreciation has been allowed in the first year itself and which is deemed as short term capital gain under Section 50 of the Income Tax Act relying upon the judgment of this Court in the case of CIT V/s. Ace Builders (P.) Limited([2005] 144 Taxman 855/281 ITR 210 (Bombay)) even though the said decision was rendered in the context of eligibility of deduction under Section 54E". The Hon'ble High Court again followed the principle laid in case of Ace Builders Pvt Ltd (supra) and observed and held that under:- 3. On further appeal, the Tribunal by the impugned order has allowed the claim of the respondent - a…

ACIT 421 Mumbai, Mumbai City vs. Samir Narain Bhojwani, Mumbai

Appeal of the assessee is allowed for statistical purposes and the

ITA 1022/MUM/2025[2022-23]Status: DisposedITAT Mumbai26 Jun 2025AY 2022-23

Bench: Shri Anikesh Banerjee, Jm & Ms Padmavathy S, Am

Section 112Section 194CSection 250Section 37(1)Section 40Section 50

…which depreciation has been allowed in the first year itself and which is deemed as short term capital gain under Section 50 of the Income Tax Act relying upon the judgment of this Court in the case of CIT V/s. Ace Builders (P.) Limited([2005] 144 Taxman 855/281 ITR 210 (Bombay)) even though the said decision was rendered in the context of eligibility of deduction under Section 54E". The Hon'ble High Court again followed the principle laid in case of Ace Builders Pvt Ltd (supra) and observed and held that under:- 3. On further appeal, the Tribunal by the impugned order has allowed the claim of the respondent - a…

Frank S International Itl Limited, Mumbai vs. ACIT(It), Circle (2)(3)(1), Mumbai

In the result, the question of law referred to the Special Bench is answered in favour of the

ITA 5429/MUM/2024[2019-20]Status: DisposedITAT Mumbai07 Mar 2025AY 2019-20

Bench: Shri. Amarjit Singh, Am & Ms. Kavitha Rajagopal, Jm

Section 115JSection 143(1)Section 143(2)Section 143(3)Section 2Section 250Section 50Section 50(1)

…017 observed as under:- “1. Heard the learned counsel for the appellant and the learned counsel for the respondent. It is fairly conceded that the Tribunal has relied upon the judgment of this court in case of CIT vs. ACE Builders Pvt. Ltd, reported in [2006] 281 ITR 210. The said judgment has been approved by the Apex Court in the case of CIT. Panji vs. VS.Dempo Company Ltd. reported in [2016] 74. Taxmann.com 15 (SC). As the issue raised in the present appeal is already covered by the above referred judgment, no substantial question of law arises.” 43. Ergo, this precise issue decided by the tribunal has been ap…

Late Pravinchandra Dwarkadas Dalal (Legal Heir Hiten Pravinchandra Dalal), Mumbai vs. Dy Commissioner of Income Tax It Circle 42(3)(1) Erstwhile Circle 33(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 5367/MUM/2024[2017-18]Status: DisposedITAT Mumbai21 Feb 2025AY 2017-18

Bench: Shri Amit Shukla & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Nitesh Joshi, AdvocateFor Respondent: Shri Krishna Kumar – Sr. DR

Section 143(3)Section 32Section 50

…al gain on sale of depreciable asset. It was held that short term capital gain computed on long term depreciable asset can be set off against long term capital loss. For this, Hon'ble Court followed its earlier decision in the case CIT Vs. Ace Builders [2006] 281 ITR 210 (Bom) wherein it was held that “by virtue of section 50 of the Act, only the capital gains is to be computed in terms thereof and be deemed to be short term capital gain. However, this deeming fiction is restricted only for the purpose of section 50 of the Act and the benefit u/s. 54E of the Act which is available only to long term capital gains…