Can Depre. be Claimed ???

i think in the F. Y. 2008-09 the depreciation shd be claimed on the closing WDV as we have not recd. any claim from Insurance company. But when we have recd. the claim of Rs. 2,25000/- we need to show short term capital loss of the excess amt. which will be 350000*15% = 52500 so the opening wdv will be 350000-52500= 297500 so, Rs. (297500-225000) = 72500 will be the STCL.

Agree with rahul....

Insurance recd is not table in IT.

Depreciation willl be provided for whole year.

Loss is debited to profit and loss account and further at time of calculation of Tax, it is disaalowed and showed as STCLoss......

Dear Rahul Pandit,

How there can be STCL in the next year because sec-50 require that when  all the assets are transferred then only the sec 50 will attract and  sec-43(6) which says WDV Canot be reduced because of THEFT incident and hence neither sec 50 nor sec 43(6) will apply. then can depre be claimed  in P Y 2009-10. 

Dear Mayank,

I accept that STCG/STCL will not arise because theft is not contemplated in charging section 45(1A)...

Nor can there be a reduction to block because 43(6) also does not cover theft...

If u want to claim a capital loss, u will have to see if there is a relinquishment of rights in the asset...

(Perhaps there may be a subrogation clause.. see that)

However, there is one point that u have missed for depreciation...

The block itself has ceased to exist since the number of assets is ZERO, so u cant claim depreciation...

@ caclub member

agreed

Views expressed by Ca Club Member seems to be correct BUT

Please chek wether there is any type of Notification of Income Tax Department or any Case Law relating to such case.

FRIENDS

NO STCG IN THIS CASE .