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Capital gains/depreciation
Mr. A has 2 proprietary business units (X & Y). During the year 1 business unit ‘X’ has sold its entire plant & machinery (only assets in fixed assets group) thereby incurring a short term loss of ` 2,51,911/-
Now my query is, Since the entire block of asset cease to exist in Business Unit ‘X’:
1. whether the short term loss of ` 2.52 Lacs will be allowed to be carried forward as Short term Loss u/s 71, or
2. Whether it will be adjusted against Plant & Machinery block of assets of Business Unit ‘Y’.
In case of Option No. 1 how the same will be reflected in ITR-4.
Kindly Help….
Replies (1)
you can clubbed asset value for depreciation purpose and adjust with plant and machinery block. There is one case supreme court decisions in BR Limited vs CIT.
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