Description:
Transfer of entire undertaking as a whole including land. Assessee was running a lodge and sold its property Tribunal held that only the capital gains on the building should be computed as short-term capital gains and the balance value of the land should be treated as long-term capital gains even though the land and building being one composite asset and assessee having claimed depreciation on the said asset.
Section 50 of the Act deals only with the transfer of depreciable assets and the land is not depreciable asset.
Source:
1. www.tpcc.in
2. The Tax Referencer .Volume117. Issue No.2 10 January2011 Page No.58.
Our comment:
Land need not be treated separately when both the building along with land is sold even though no depreciation is claimed. The land is at par with other assets even though no depreciation is claimed when it became a part of the commercial organization.
