Supreme Court stays Bombay HC order on depreciable asset tax rate
In short
The Supreme Court has stayed a Bombay High Court order on the capital gain tax rate for depreciable assets.
The Bombay HC had told the tax department to follow the ITAT special bench ruling in SKF. The top court will hear the matter soon.
What the reporting says
The Supreme Court stayed a Bombay High Court order on the capital gain tax rate for depreciable assets and will hear the matter soon. The stay follows the Bombay HC ruling that directed the tax department to follow the ITAT special bench decision in SKF on the issue. The legal question over the applicable tax rate now moves to the apex court for decision.
Why it matters
The Supreme Court’s stay pauses the Bombay High Court’s direction to the tax department on capital gain tax treatment for depreciable assets. The dispute centers on whether the ITAT special bench ruling in SKF should be followed. The matter is now set for the apex court, which leaves the tax position unresolved for affected taxpayers and the department until further hearing.