Capital Assets - Law Dictionary Search Results
Home Dictionary Name: capital assetsCapital asset
Capital asset, The expression 'capital asset: is defined in S. 2(14) of the Income-tax Act, 1961 to mean 'property of any kind held by an assessee'. It is of the widest amplitude, and apparently covers all kinds of property except the property expressly excluded by clause (i) to (iv) of the sub-s. which, it will be seen, does not include goodwill. But the definitions in S. 2 are subject to an overall restrictive clause, CIT v. B.C. Srinivasa Setty, (1981) 2 SCC 460 (463): (1981) 2 SCR 938: AIR 1981 SC 972.Includes capital asset as property of any kind held by the assesse, A.R. Krishna Murthy v. CIT, (1989) 1 SCC 754: AIR 1989 SC 1055 (1057). (Income Tax Act, 1961, s. 214)...
Distribution of capital assets
Distribution of capital assets, the expression 'distribution capital assets' in the third proviso to sub-s. (1) of, s. 12B of the Act, means distribution in specie and not distribution of sale proceeds, James Indersan v. C.I.T., AIR 1960 SC 751 (755): (1960) 3 SCR 167. [Income-tax Act, 1922, s. (12B)(i), Third Proviso]...
capital asset
capital asset see asset ...
Capital assets
Capital assets, do not include lands from which the income derived is agricultural income, First ITO, Salem v. Short Brothers (p.) Ltd., (1966) 3 SCR 84: AIR 1967 SC 81 (85). [Income Tax Act (10 of 1922)]...
asset
asset [back-formation from assets, singular, sufficient property to pay debts and legacies, from Anglo-French asetz, from Old French asez enough] 1 : the entire property of a person, business organization, or estate that is subject to the payment of debts used in pl. compare equity 2 : an item of property owned admitted asset : an asset allowed by law to be included in determining the financial condition of an insurance company compare nonadmitted asset in this entry appointive asset : an asset in an estate that is to be distributed under a power of appointment capital asset : a tangible or intangible long-term asset esp. that is not regularly bought or sold as part of the owner's business ;specif : any asset classified as a capital asset by law (as section 1221 of the Internal Revenue Code) cur·rent asset : a short-term asset (as inventory, an account receivable, or a note) that can be quickly converted into cash equitable asset : an asset esp. in an estate that is sub...
Capital gains
Capital gains, capital gains would be covered by the definition of 'income' in sub-s. (6C) of s. 2, only if they were chargeable under s. 12B. As noticed already, s. 12B as modified by the Finance Act 1949, did not charge any 'capital gains' arising between April 1, 1948, and April 1, 1957. Indeed s. 12B was not operative in these years (1948-57). During this period, 'capital gains', whether on the positive or the negative side, could not be computed and charged under s. 12B or any other provisions of the Act, Commissioner of Income-Tax (Central), Delhi v. Harprasad & Co. (P.) Ltd., (1975) 3 SCR 696: AIR 1975 SC 1282: (1975) 3 SCC 868.The goodwill generated in a newly commenced business cannot be described as an 'asset' within the terms of s. 45, and therefore its transfer is not subject to income tax under the head 'Capital gains', CIT, Bangalore v. B.C. Srinivasa Setty (1981) 2 SCR 938: (1981) 2 SCC 460: AIR 1981 SC 972.The profit realised when a capital asset is sold or exchanged, B...
Capital goods
Capital goods, include all types of properties including consumable raw material, components etc. Capital goods become capital goods when used in the manufacture of products. Every Capital asset is not capital good, C.C.E. v. Ginni Filaments Ltd., (2005) 3 SCC 378 (388).Means plant, mechiners and equipment used in trade or manufacturing of goods, [Manipur University Act, 2005, s. 2(e)]Is very wide. Capital goods can be machines, machinery, plant, equipment, apparatus, tools or appliances, Commissioner of Central Excise, Coimbatore v. Jawahar Mills Ltd., (2001) 6 SCC 274.Means--(a) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any changes in any substance for the manufacture of final products;(b) components, spare parts and accessories of the aforesaid machines, machinery, plaint, equipment, apparatus, tools or appliances used for aforesaid purpose; and(c) moulds and dies, generating sets and wei...
capital expenditure
capital expenditure : an amount paid out that creates a long-term benefit (as one lasting beyond the taxable year) ;esp : costs that are incurred in the acquisition or improvement of property (as capital assets) or that are otherwise chargeable to a capital account NOTE: Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis. ...
Asset
Asset, means capital asset. It is conceded by the revenue, N. Bagavathy Ammal v. Commissioner of Income Tax, Madurai, (2003) 3 SCC 161....
capital gains tax
capital gains tax A tax on income derived from the sale of a capital asset, like real estate holdings or investments. Source: FindLaw ...
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