Transfer Of Depreciable Capital Assets Attracts Capital Gains Tax: Kerala High Court

The Kerala High Court ruled that transfer of depreciable capital assets qualifies as a "transfer" under the Income Tax Act, attracting capital gains tax. The decision clarified that despite the term "transfer" not being defined to include depreciable assets, such assets are subject to taxation upon transfer. The court emphasized that the definition of "transfer" under the Act is broad enough to encompass depreciable assets, aligning with the legislative intent to tax gains arising from their transfer. This judgment reinforces the application of capital gains tax to transactions involving depreciable assets under Indian tax law.