Block of Asset & Capital Loss
This query is : Resolved
06 November 2009
Respected Professional Members,
I have one query.
Our Co. deals with 2 products.
One is soap & other is Plastic pipes.
Different machines are there for both of them i.e. the Plant & Machinery for both are different identifiable Plants.
Can we treat both plants as different block of asset?
Actually, we had sold the P&M of Plastic Pipe Division and if treated as seperate block, we can claim Short term capital loss on it & continue claiming depreciation on P&M of Soap Division.
Pls. advise on basis of judiciary or legal decision.
Thanks in advance.
I have one query.
Our Co. deals with 2 products.
One is soap & other is Plastic pipes.
Different machines are there for both of them i.e. the Plant & Machinery for both are different identifiable Plants.
Can we treat both plants as different block of asset?
Actually, we had sold the P&M of Plastic Pipe Division and if treated as seperate block, we can claim Short term capital loss on it & continue claiming depreciation on P&M of Soap Division.
Pls. advise on basis of judiciary or legal decision.
Thanks in advance.
06 November 2009
Dear Alpesh
in ur case there are two devsion in one single comapny so as per Sec. 32 read with rule 43 of IT Act u have to follow Block of Asset method for Dep.
therefor only for claiming Short term Cap loss u can not bifurcate, u have to simply deduct the sell amount of p&m of Plastic Pipe Devision from P&M Block
in ur case there are two devsion in one single comapny so as per Sec. 32 read with rule 43 of IT Act u have to follow Block of Asset method for Dep.
therefor only for claiming Short term Cap loss u can not bifurcate, u have to simply deduct the sell amount of p&m of Plastic Pipe Devision from P&M Block
07 November 2009
Agree with the expert
19 December 2009
Thanks Mr. Shahzad Sayyed & Mr. Deepak.
19 December 2009
.
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