50. Special provision
for computation of capital gains in case of depreciable assets.-
Notwithstanding anything contained in clause (42A) of section
2, where the capital asset is an asset forming part of a block
of assets in respect of which depreciation has been allowed
under this Act or under the Indian Income-tax Act, 1922 (11
of 1922), the provisions of sections 48 and 49 shall be subject
to the following modifications :—
(1) where the full value of the consideration received or
accruing as a result of the transfer of the asset together
with the full value of such consideration received or accruing
as a result of the transfer of any other capital asset falling
within the block of the assets during the previous year, exceeds
the aggregate of the following amounts, namely :—
(i) expenditure incurred wholly and exclusively in connection
with such transfer or transfers;
(ii) the written down value of the block of assets at the
beginning of the previous year; and
(iii) the actual cost of any asset falling within the block
of assets acquired during the previous year,
such excess shall be deemed to be the capital gains arising
from the transfer of short-term capital assets;
(2) where any block of assets ceases to exist as such, for
the reason that all the assets in that block are transferred
during the previous year, the cost of acquisition of the block
of assets shall be the written down value of the block of
assets at the beginning of the previous year, as increased
by the actual cost of any asset falling within that block
of assets, acquired by the assessee during the previous year
and the income received or accruing as a result of such transfer
or transfers shall be deemed to be the capital gains arising
from the transfer of short-term capital assets.
|
