Capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2011 Sec 50- Long Term Capital Gain-Short Term Capital Gain

Firm Purchased Premises in A.Y. 1977-78. Claimed Depreciation. Sold it in A.Y.2011-2012
Can I divide the said Asset in Land & Building seperately

As decided by the Bombay High Court :

Commr. Of IT Vs. Citi Bank N.A. dt. 23-04-2003

261 ITR 570 , 134 Taxmann 467

3. Can I substitute Value as on 01-04-1981 for Land for consideration of Long Term Capital Gain and Value as on 01-04-1988 for Building for consideration of Short Term Capital Gain. Being Sec. 50 has given effect

w.e.f. 01-04-1988

4. Any other view or Case Law for above fact.

Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 August 2011 The facts of the case are different.

1. You have purchased premises, and might have claimed depreciation on full value of the premises.

2. Had the Consideration for Land been shown separately in the Sale deed, and depreciation on land has not been claimed so far then only your case may be considered at par with the cited case law.

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