Hi, can any one help me out with a solution for the below case
Fire accident took place at one of my clients business premises during fy 2013-14 some where around december 13, IT assets like computers and servers were completely destroyed and there is no insurance for any infrastructure except building. So there wont be any Insurance compensation relating to Loss of IT assets
In this case, all the computers and servers for eg say if 100 computers are there all of those were lost and the value of the Bolck as on the date of fire accident is "Zero". After one month of the fire accident again around 50 new computers were purchased, hence the Block of Computers at the year end is "not Zero"
As there is no question of Insurance claim or any sale value, I guess that, there wont be any deductions in the block value.
Now my question is, in the above case on what value depreciation as per IT need to be computed. On 150 computers (100 lost and 50 new computers) or only on 50 computers by treating as block ceased to exist in the middle of the year?
Is it correct to claim depreciation on 150 computers as per block concept even if 100 computers were totally lost and i guess there wont be any short term capital gain loss, when we are claiming depreciation and no writeoff in the block value
waiting for your replies, Thanks in advace
CAclubindia
