Can a company buy lot of Fixed asset and claim deprecaition more than it's income? and later sell ?

You are confused between income tax liability over the asset, its depreciated value, block of assets rules & depreciation rules as per company act....

For all such estimate, firstly go with income tax rules alone, where depriciation rate for building is 5%.

Raise the query again with that calculation...

Check whether block of assets exist...

If not what is your capital gain over which tax liability exist?

Your tax-deferral intuition can be valid in principle, but the example assumes tax depreciation of ₹50 crore on a building and then treats the later sale as a ₹50 crore capital gain. Those figures depend on the asset’s tax block, depreciation actually allowed and sale-year rules; book depreciation or a revaluation does not itself determine taxable depreciation.

• Depreciation and sale: For a company, depreciation is generally computed under the Income-tax Act’s block-of-assets system, not simply asset by asset. If the building is depreciable and forms part of a block, sale proceeds reduce that block’s written-down value. If the block continues to exist, the sale may not create a separate capital gain; if the block ceases to exist, a short-term capital gain or loss may arise under the block rules. The result is not automatically “sale price minus original cost” or “sale price minus ₹50 crore depreciation.”
• Tax timing: Earlier depreciation deductions can defer tax, so the time value of money may provide a benefit. But compare the actual tax saved in each year with tax arising on sale, applicable rates and any other consequences; the sale proceeds and tax treatment may differ from your simplified example.
• Revaluation: A book revaluation generally does not increase the tax cost or reset the tax written-down value. For a depreciable asset, revaluation alone does not change the tax basis used for depreciation or sale. Accounting treatment and tax treatment should be tracked separately.

The precise outcome depends on the building’s tax classification, whether it is used for business, the block’s opening WDV and other assets or disposals in the block, and whether the block ceases to exist. This is the kind of tax-basis and disposal analysis that belongs in an asset register and tax computation workflow. Manual tracking across years is difficult, and automation can reduce repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For help streamlining your compliance workflows, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1

Buying assets for depreciation and selling later – why the deferral is smaller than it looks:
• Rates: non-residential buildings get 10% WDV and residential buildings 5%; land is never depreciable. On a ₹100 crore building, 5 years at 10% gives about ₹41 crore, not ₹50 crore. Assets used under 180 days in the year of purchase get only half.
• Sale: under Sec 50 the gain on a depreciable asset is always short-term, computed against the block's WDV, and taxed at the company's normal rate (22%/25%/30% plus surcharge and cess), with no indexation. For land and building, Sec 50C stamp-duty value applies if higher than the sale price.
• Revaluation does not help: tax depreciation and gains run on actual cost (Sec 43(1), 43(6)), so the revaluation reserve is ignored for tax.
• Excess depreciation is not lost: unabsorbed depreciation carries forward indefinitely (Sec 32(2)). But a company in the old regime may pay MAT on book profit (Sec 115JB).
• Acquisitions without genuine business use invite GAAR and disallowance. From 1 April 2026, the corresponding provisions of the Income-tax Act, 2025 apply in the same way.