M RAGHAVAN Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessment year is 1994-95.

(2.) THE assessee who is a senior advocate, sold 371 volumes of books, all of which except 14 volumes, had been purchased between 1984 and 1988 and the remaining 14 between 1988 and 1993, for a sum of Rs.1,25,000/-. Out of that, a sum of Rs.15,500/- was paid as commission to the bookseller.

(3.) SECTION 50 of the Act which was introduced with effect from 1.4.1988, is titled 'special provision for computation of capital gains in case of depreciable assets". The opening part of SECTION 50 reads thus: "Notwithstanding anything contained in clause (42-A) 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 22), the provisions of SECTIONs 48 and 49 shall be subject to the following modifications:- .... " It is not necessary to refer to sub-section (1) thereunder, as that admittedly does not apply to the facts of the assessee's case. Sub-section (2) however is relevant and material. That sub-section (2) reads as under:-