Loss due to destruction of machinery
This query is : Resolved
08 October 2012
Loss due to destruction of machinery caused by fire is not deductible since it is capital in nature, is it true ? please explain.
09 October 2012
P&M is a depreciable asset and therefore the loss will not qualify for deduction. However, if you get any proceeds and the block of asset is totally gone there might be a situation of short term loss.
09 October 2012
In case of depreciable assets, there can not be capital gain/ capital loss except in case where the entire block of assets becomes empty or becomes zero.
AS in your case the machinery has been damaged by fire, yoh would not have realised any thing, hence the question of deducting the amount from the Block of Assets does not arise.
AS in your case the machinery has been damaged by fire, yoh would not have realised any thing, hence the question of deducting the amount from the Block of Assets does not arise.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Annual return in Gst
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
