Balancing charge

Section 41(2) is applicable to block of Asset,

If sale value of one Asset is more than its WDV but less than WDV of block of Asset then there is no question for Balancing Charge, It results into Decrease of WDV of the Block

Thanks Momin for the reply. However, as per Section 50, if the full value of consideration (considering it to be the moneys payable) exceeds the WDV of the block at the beginning of the year, then such excess is chargeable to Short term Capital Gain. Then what is the use of Section 41(2). You cannot tax twice the same amount under different heads in a single previous year.

Kindly help me out in this regard as it is holding up my tax audit for a client.

Extremely Sorry for the late reply,

Section 41(2) deals with Assets of Power Generation Plants where Depreciation has been claimed on SLM Basis,

In your Case Section 50 will apply.

Originally posted by : CA Momin Owais Ahmed
	Extremely Sorry for the late reply, Section 41(2) deals with Assets of Power Generation Plants where Depreciation has been claimed on SLM Basis, In your Case Section 50 will apply.

Thanks Momin. But I got my answer 5-6 days back after a thorough research by myself. Thanks again for replying