Application of sec. 11(1a)

GAUTAM SHARMA (Audit Assistant) (353 Points)

04 June 2013  

Dear friends. I am facing a problem regarding application of sec. 11(1A)

Assesse is Registered under sec 12 of IT Act & it is claiming depreciation as per books of accounts as regards to application of income. The Assesse has a depreciable asset which was was destroyed in A.Y. 12-13 and received a insurance compensation in A.Y. 13-14 . Now my Questions are:

1.How sec 11(1A) should be applied & what should be the cost of transfered asset for computation of capital gains?

 2. If Sale consideration received ( Claim Received) is used for acquiring new capital asset , then what should be cost of new capital asset and how depreciation should be charged on new asset.

It is very urgent