dep.
This query is : Resolved
16 August 2010
an assessee was having block of assets of trucks which he was using for transportation.
During previous year he sold one asset from the block and utilized the money for purchasing new truck.
AO is demanding Capital Gain Tax on its sale so please suggest the treatment.
according to sec 50(1) where the full of consideration regarding the sold asset exceeds
(i) exp. wholly and excl. in connection with such transfer of assets
(ii) wdv of block of assets at the begining of py.
(iii) the actual cost of any asset purchased.
so as far as BOA concept is concerned sec 50(2) is applcable when block ceases to exist.
what is the remedy available.
During previous year he sold one asset from the block and utilized the money for purchasing new truck.
AO is demanding Capital Gain Tax on its sale so please suggest the treatment.
according to sec 50(1) where the full of consideration regarding the sold asset exceeds
(i) exp. wholly and excl. in connection with such transfer of assets
(ii) wdv of block of assets at the begining of py.
(iii) the actual cost of any asset purchased.
so as far as BOA concept is concerned sec 50(2) is applcable when block ceases to exist.
what is the remedy available.
16 August 2010
Since the block of assets do not ceases, the question of capital gains does not arise.Ref :- section 50 of IT Act,1961.
Conversly depreciation has to charged on the block. For this, WDV may be added with the cost of new truck and the sale value of old truck may be deducted therefrom and depreciation is to be charged on the resultant figure.
Conversly depreciation has to charged on the block. For this, WDV may be added with the cost of new truck and the sale value of old truck may be deducted therefrom and depreciation is to be charged on the resultant figure.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Itr 1 processing
- Reporting Income under Section 44ADA
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
