depreciation ...... benefits

depriciation benefit is available to set off against business income only, for personal use no depreciation is available.

You cannot claim the benefit of Depreciation as you are going to sell the Computer. But your friend can claim the benefit of depreciation @ 30% in A.Y 11-12 as it is purchased by your friend after more than 180 Days.

Regards,

Devendra Kulkarni

Firstly depreciation is allowed in respect of Block of Assets and if you don't have any other asset in the block of Computer other than those you sold then you will not get any benifit of Depreciation but will be able to claim Short trem Capital Loss of 23000(55000-32000). XYZ will be able to claim 30% depreciaton on 32000 as used by XYZ for less than 180days.