capital gain

It is depreciable asset and claims 15% depreciation under block 'Plant & Machinery'.

EDIT : Regarding, LTCG or STCG, since it is a depreciable asset, it will be STCG only.

And yes dep. is claimed u/s 37 not 57.

Thanks for replying Abhishek. that machinery is not used in business but given on rent so rent received is taxed under the head income from other sources & depreciation is an allowable expense. 

there is always short term capital gain on depreciable asset. i m confused b/w these two concepts.

whether it form part of block?

Hmmmmmmm........... if, the machinery is just another asset for the business, i.e., business is not to rent the machinery, then, it will form part of block.