Section 50-fixed asset-->building ceases to exist

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Kunjan (Querist)

22 September 2026 assessee is partnership firm following wdv depreciation method. (same like income tax return)
there are 3 offices having wdv 35 lakhs.
one office is sold for 90 lakhs
closing wdv cant be negative in books,

my q--> should i make wdv nil in books also in bal sheet? inspite of 2 existing offices, how can bal sheet have no fixed asset?

my view--> prof loss will have book gain of 55 lakhs .
but how to show 2 offices in bal sheet ? the whole building block becomes nil in value..so cant show exisitng 2 offices also in bal sheet right?
little confused,
regards, ca kunjan, 9222 922 92

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 September 2026 To briefly encapsulate the solution, the firm will show a NIL block value and a 55 lakh short-term capital gain for income tax purposes, but for the books of account, they must separate the value of the sold office from the remaining two. The two unsold offices stay on the balance sheet at their individual carrying amounts, while the book profit is calculated solely against the derecognized value of the sold property.

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