Loss on sale of Asset

This query is : Resolved

ravikanth (Querist)
Follow

26 February 2009 My client has sold his car for Rs.1.20 lakhs during the previous year 07-08. The W.D.V. of Car as on 01-04-07 is Rs.2.00 lakhs.

Can he calim loss on sale of car Rs.0.80 lakhs as a business expenditure for the asst year 08-09.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

26 February 2009 If the car was a business asset, and there is no other assets in the same block with same rate of depreciation (vehicles) Rs 0.80L can be claimed as business expenditure.

ravikanth

ravikanth (Querist)
Follow

26 February 2009 Thanks for giving explanation, Loss on sale of Car. Car was a business asset and no assets in the same block.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
Follow

26 February 2009 If it is the case, then you can claim it as a loss on sale.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

27 February 2009 The loss of Rs 0.80L is not business expenditure but it is a Short term capital loss u/s 50. This loss cannot be set of against business income u/s 70(1) of The Income-tax Act,1961.