Section 72A

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Ravi (Querist)
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13 February 2010 Hi, I am a CA Final Student doing Articleship. I want to know the meaning of the 'BOOK VALUE' of the Fixed Assets as stated in sub-section (2)(a)(ii) of section 72A.
Whether it is gross book value or net of Depreciation. Because if it is net of Dep then the book value is bound to come down as against stated in the said section and if it is gross value then it will be over riding the general accounting meaning of the book value as net of dep. Please reply.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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13 February 2010 Book Value means whatever amount shows out books as on date, means net of Depreciation

Regards!!!
Dinesh S. Adhikari

Ravi

Ravi (Querist)
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13 February 2010 Thanks Dinesh for showing interest in query.
But there is another problem, as you told that the Book Value is net of dep then after dep the book value will come down beyond the 3/4 level due to dep so this condition for allowing the loss to the amalgamated company will never fulfil in the case of any company.
Can you please give me any circular or notification ref. to that effect.

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