capital gain in case of godown sold

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2010 iam a dealer in grain & pluses , i had purchased a godown in the year Dec-2007 having w.d.v as on 31 st march 2008 18,59,236 .

In year 2008-09 dep claimed rs. 1,85,924
wdv as on 31 st narch 2009 16,73,312/-
in f.y 2009-10 its sold rs. 30,00,000/- payment received on dec 2009 , but agreement held in may 2010.

how much dep shall be in 2009-10 , capital gain tax treatment,

please provide with calculation

CA Ujjaval Desai

CA Ujjaval Desai (Expert)
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02 August 2010 Depreciation for 09-10 Rs. 167331/-
WDV as on 31.03.10 Rs. 1505980/-

Short Term Capital Gain Rs. 14,94,020/-

As the ownership is not tranfer till 31.03.10 dep. will be allowed for the year 09-10

Ratan Sharma

Ratan Sharma (Expert)
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02 August 2010 If the payment is received and the possession of godown is given then it is deemed sale on dec 2009. Refer sec. 53A of the transfer of property Act & contract Act. On which date agreement is entered into is immaterial . It is only a technical issue that the registration is carried out in may 2010. Property is given and consideration is received, is sufficient to hold that sale is effected.
Therefore in my opinion it attract STCG in F.Y. 2009-10. There will be no question of claiming depreciation as the property is sold out. Experts plz correct me if I m wrong.
Mr. B.Chackrapani Warrier & Mr. Aditya Maheshwari plz advise.

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