About disallowance of profit on sale of asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2014 In a block of assets an asset is sold for Rs.2000 whose WDV is Rs.1000 and the block was still existed and profit of Rs.1000 is recognised in P&L. should we less profit of Rs.1000 in computation statement?

CA Madhvi

CA Madhvi (Expert)
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30 September 2014 iF BLOCK OF ASSET STILL EXISTS THEN THERE IS NO CAPITAL GAIN U/S 50.AND GAIN ON SALE OF ASSET AS PER BOOK IS CAPITAL RECEIPT AND NOT BUSINESS INCOME SO YOU HAVE DEDUCT WHILE COMPUTATION OF INCOME

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