Summary
The Supreme Court issued notice on the Income Tax Department's petition and stayed a January 2026 Bombay High Court order that asked the department to follow the ITAT Special Bench ruling in SKF. The dispute is whether gains on depreciable assets deemed short-term under Section 50 can still get the Section 112 long-term rate. The merits are yet to be heard.
What it means for you
Taxpayers claiming the concessional long-term rate on sale of depreciable assets should treat the issue as disputed until the Supreme Court decides.
This summary is general information, not legal advice. The outcome of any case depends on its facts; read the source and take advice before acting.
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