Depreciation

Dear Sanjay Sir,

U might have paid the net amount but books will disclose the entire transactions...

In Books

U have to record sales consideration of old asset, recognize gain/loss in the P/L A/c

Recognize New asset at Rs. 1 lacs

In Income Tax

If these r falling in same Block, which I suppose they r, then In Opening WDV u will add additions of Rs. 1 lacs & Less Sales consideration - Though the ultimate effect is same, what u would have got in cases of net entry, but then it's a matter of presentation..

If these are falling in different Blocks then No choice but u have to disclose the two transactions separately.........

I agree with Amir