Block of Assets benefit in discontinued business
This query is : Resolved
CA Ritu Chauhan
(Querist)
27 June 2022
A firm was in the business of wholesale & retail trading. It was having an immovable property in its block of assets for the purpose of depreciation as per Income Tax Act. The firm has discontinued its business activities & given the immovable property on rent. In this situation;
1) Whether the firm can set off depreciation on the immovable property against rent income ?
2) If firm wishes to sale the property & buy a new property within same year then whether the company can claim benefit of concept of block of asset, i.e. can the new property be added to the block of assets & hence no capital gain would arise as there is still positive balance remaining in the block after deducting selling price of the old property.
1) Whether the firm can set off depreciation on the immovable property against rent income ?
2) If firm wishes to sale the property & buy a new property within same year then whether the company can claim benefit of concept of block of asset, i.e. can the new property be added to the block of assets & hence no capital gain would arise as there is still positive balance remaining in the block after deducting selling price of the old property.
07 July 2022
1. No
2. No.
2. No.
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