depreciation

Agreed with above reply.

1. You have to put the sale consideration received in the disposal portion. Since you have sold the machinery as scrap it probably should not result in Short term capital gains. 
2. There won't be any capital loss or gains with respect to Income tax. However, with respect to Companies book, you need to compute Loss from sale of machinery and debit the same in books and subsequently make an adjustment in the Companies depreciation schedule. 
3. Your block still exists and depreciation will remain to be computed on the balance WDV available after disposal of the above machinery for IT purpose. 
4. Refer sec 50 for clarification. 
Please correct me if the above solution has an alternative view. 

Deduct the sale proceeds of from the block value.

If positive value, block exists, and depreciation charged over remaining value.

If negative value, block cease to exist, with the additional amount to be offered to STCG.