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depriciation

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seema singla (Querist)

26 November 2008 Ours is a petrol pump owned by a HUF. It is sold on 30-09-2008. Our profits / losses will be considered for the period 1-4-2008 to 30-9-2008. My query is regarding depriciation to be charged on the fixed assets with us. It is to be charged for the full year or for half year.else for half year in the books of petrol pump and for another half year in the books of HUF as the same HUF is running another business too.
Please ans.
It is urgent
Thanks a lot

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

26 November 2008 As per income tax act if assets are sold in an year no depreciation need to be charged in the accounts in the year of sale. So the remaining part of the question is immaterial.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

26 November 2008 As the petrol pump is owned by a HUF, as such it is presumed that the query is in context with depreciation under the Income Tax Act. Under the provisions of the Income Tax Act, no depreciation is available to the seller in the year of sale.

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