Itxa/224/2012 Of The Commissioner Of Income Tax- 12, Mumbai v. M/S. Bharat Enterprises

sas itxa224-12 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.224 OF 2012 The Commissioner of Income Tax-12, Mumbai ..Appellant. V/s. M/s. Bharat Enterprises ..Respondent. Mr. Suresh Kumar for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATED : 21ST JANUARY, 2013 P.C. :- 1.In this appeal filed by the revenue for the assessment year 2006-07, the following questions of law has been proposed for our consideration :- (a)Whether on the facts and in the circumstances of the case and in law, the ITAT is justified in confirming the decision of CIT(A) in allowing exemption u/s.54EC from the short term capital gain computed u/s.50 on the depreciable assets and has failed to appreciate that, as per provisions of Section 54EC, the exemption is available only in respect of long term capital gain ?law, the ITAT is justified in confirming the decision of CIT(A) in allowing exemption u/s.54EC from the short term capital gain computed u/s.50 on the depreciable assets and has failed to appreciate that, as per provisions of Section 54EC, the exemption is available only in respect of long term capital gain ? (b)Whether on the facts and in the circumstances of the case and in law, the ITAT is justified in not taking cognizance of Section 50, which is a special provision for computation of capital gains in case of depreciable assets, which mandates that capital gains arising on the transfer of depreciable assets of a block shall be deemed to be capital gains arising from the transfer of short term capital assets and thus excludes available of exemption u/s.54EC which is applicable only in regard to long term capital gains ?law, the ITAT is justified in not taking cognizance of Section 50, which is a special provision for computation of capital gains in case of depreciable assets, which mandates that capital gains arising on the transfer of depreciable assets of a block shall be deemed to be capital gains arising from the transfer of short term capital assets and thus excludes available of exemption u/s.54EC which is applicable only in regard to long term capital gains ? 2.The Tribunal has followed the decision of this Court in the matter of CIT V/s. M/s. ACE Builders Pv.t. Ltd. reported in 281 I.T.R 201 (Bom) and the same coversthe issue raised in the present appeal. Hence we see no reason to entertain the proposed question of law. Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)