Treatment of assets/depreciation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2016 Assesse had been doing business of DTP, Xerox and internet café from the financial year 2008-09 to 2014-15. Accordingly the said business income has been shown in his ITR by providing depreciation for the assets used in the business i.e. on computer, Xerox machine, printer, AC and furniture. But as the said business was not running well he closed it and started business of plying passenger bus from July 2016.
Now for the financial year 2015-16 he has only business income from plying bus as his completely shut down his previous business. Now my question is what is the treatment of the assets of his previous business (he did not sold those assets and keep them with him) as per income tax act. Can we charge depreciation of the said assets against the revenue of plying bus or not? If we can not charge depreciation of the said asset against revenue then is it come in his balance sheet? Or what is the actual treatment of this please suggest.
Thanks in advance

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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27 August 2016 I understand that the assets are used till July 2016. Hence, depreciation can be claimed for the entire year even if used for a single day. this is for income tax purposes. for the purpose of books of accounts, the depreciation should be limited till July 2016 only.

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