Capital gains

On the mere ground that the assessee was once a 100% export undertaking, the assessee could not be denied the benefit otherwise available to the assessee on the block of assets on the expiry of the tax holiday period for the purpose of the working of capital gains under s 50(2), as held by ChenHC in S Muthurajan v Dy CIT — In favour of: The assessee.

If the assets transferred from the 100% export-oriented unit and the assets purchased come for same percentage of depreciation as prescribed in the table, the assessee would be justified in seeking an adjustment in the matter of working out the capital gains.

Decided on: 10 August 2011.