adjustment of profit on sale of fixed assets credited to profit anf loss in income tax return

See column A-3 in Sch BP in ITR 6:"Income/ receipts credited to profit and loss account
considered under other heads of income/chargeable
u/s 115BBF/ chargeable u/s 115BBG". fill Income credited as gain on sale of fixed asset in capital gain head. Further fill relevant calculation of loss/gain under Head CG as per income tax in sch CG.

But there is no capital gain on such transaction. There is only a book profit on sale of assets as per statement of profit and loss.. As far as MAT ia concerned, MAT is lower than the normal income tax computed. Hence there is a need to adjust the profit on sale of assets in normal income tax computation. Hence, the doubt is under which column of the ITR 6 and under which section such adjustment of deduction should be shown.

as per my understanding, your problem is that your P/L showing net profit of Rs 100 which consist of 90/- from business and 10/- from profit on sale of asset as per Companies act though as per IT act it should be 90/- from BP and (-)5/- as capital gain loss. if this is the problem, above solution shall work. fill 10 rs in said column in Sch BP and show (-)5/- in Sch CG giving full consideration and cost etc detail. It will adjust(reduce) the amout of sale of asset from income from BP and there will be claim of capital loss also.

First of all thanks for putting your time on this.. Let me give one example here..
1. Total profit of the company is 100, 90 is from business and 10 is from profit on sale of fixed assets. Remember 10 is profit on sale of assets as per companies act which is credited in profit and loss.
2. Now when preparing income tax return, profit as per companies act was taken as a base which is 100 and then allowance and diaallowance are to be made in ITR 6 in OI section and BP section. It was also noted that when computing the depreciation as per income tax, there was no profit as the sale consideration was less than the opening WDV. So the block stil exists in income tax and there is a normal depreciation to be charged in income tax and no profit on sale of assets arose..
3. As income tax need to be computed on the taxable income, we should deduct 10 from the profit as per 90 was the business income and zero is the capital gain and Loss as per income tax

4. Considering 1, 2 and 3 above, under which section, where and how to deduct Rs 10 in ITR6 from the profit of 100 to arrive at correct income taxable income of 90...

I have the same doubt... Can anyone please clarify.??

Mr. Rohit has raised a very valid and genuine query, I am also facing the same problem... Please anyone help...

As per my understanding the amount of profit on sale / discard of depreciable asset is required to be reduced from PBT by showing the same at Schedule BP A3b Capital Gains only. No other disclosure required in ITR because ITR  itself calculates deemed capital gain on sale of depreciable assets at sch DCG.

Have you find any solution?

It should be sbown under the exempt income

No solution yet. Problem still continues 

Rohit not confuse, it should be shown under exempt income column, problem is solved,, okkk,, in case loss such loss is dissallowed under section 37 that is the treatment

What is the treatment of the same while filing ITR and Tax audit report?

Rohit, did you find any proper legal solution to you very very genuine problem..? Please share. I am facing the same problem this year.

Rohit, did you find any proper legal solution to you very very genuine problem..? Please shares  I am also facing the same problem this year.