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.
CAclubindia
