Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2010 My one of clients business (Partnership firm) taken over by Company in between of the year.

Can I Claim proportionate depreciation between Partnership firm and Private limited Company ? under what section ?

Is the Capital Gain arise from this is exempt or taxable ? under what section ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 September 2010 Proportianate depreciation claim

Proviso to 32
57[Provided also that the aggregate deduction, in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets or know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets allowable to the predecessor and the successor in the case of succession referred to in clause (xiii) and clause (xiv) of section 47 or section 170 or to the amalgamating company and the amalgamated company in the case of amalgamation, or to the demerged company and the resulting company in the case of demerger, as the case may be, shall not exceed in any previous year the deduction calculated at the prescribed rates as if the succession or the amalgamation or the demerger, as the case may be, had not taken place, and such deduction shall be apportioned between the predecessor and the successor, or the amalgamating company and the amalgamated company, or the demerged company and the resulting company, as the case may be, in the ratio of the number of days for which the assets were used by them.]

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 September 2010 capital gains exempt if it satisfies the condition prescribed in section 47(xiii).