Loss on sale /scrap of assets

This query is : Resolved

rajendra utpat (Querist)
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01 January 2018 X Ltd scrapped entire block of assets at zero value .
Opening WDV as per IT act 1 lacs and same amount showed as deletion.

In company act treatment as follows
opening WDV Rs.53 lacs
Depreciation till scrap date Rs.35 lacs
Balance wdv Rs. 18 lacs
Scrap value 0
Loss on scrap Rs. 18 lacs
Will loss on sale allowed as short capital loss
Assess has shown Rs .18 lacs in profit/loss account but in computation assessee has not given effect to such loss.
Now what will consequence in income tax act in assessment?
Will STCL loss will be allowed to set off or disallowed?
Can AO invoke provision of section 271(1)(c) for furnishing inaccurate particulars?

CA Suresh Jain

CA Suresh Jain (Expert)
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01 January 2018 Loss is not allowable under income tax act. Revise the return if time is there. The AO may invoke 271 (1) (c)

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