ITAT: Sale Proceeds from Depreciated Assets Qualify for Tax Benefits

26 Aug 2024 CW Team

The Income Tax Appellate Tribunal (ITAT) has ruled that proceeds from the sale of depreciated assets qualify for tax benefits if they are invested in the purchase or construction of a new residential property. The decision provides much-needed clarity for taxpayers looking to reinvest proceeds from assets that have lost value over time.

The ruling stems from a case where a taxpayer claimed capital gains exemption under Section 54F of the Income Tax Act. This section allows for tax exemption on long-term capital gains if the proceeds are reinvested in a residential property. The taxpayer had sold a depreciated asset and used the proceeds to purchase a new home, seeking tax relief on the reinvested amount.

The tax authorities initially rejected the claim, stating that the asset was depreciated and, hence, did not qualify for tax benefits. However, the ITAT overruled this decision, stating that the nature of the asset?s depreciation does not negate the taxpayer's eligibility for benefits under Section 54F. The tribunal emphasised that the purpose of the law is to encourage reinvestment in residential properties, regardless of the asset's prior depreciation.

This ruling is significant as it sets a precedent for similar cases, providing relief to taxpayers who seek to reinvest their capital in real estate, even from depreciated assets. It also underscores the importance of the provisions under Section 54F, which aim to incentivize investment in residential properties.

Infrastructure Urban

10 Mar 2026

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..