Depreciation charged on Fixed Assets and credit note received after 1 year

The depreciation will be calculated on reduced value under both the acts

How did you receive a credit note of that amount? Anyways, you have to change your policy to revaluation method from cost method and depreciate accordingly.

Eg purchased 

Dr. Asset 100

Cr. Bank 100

And after 2 year depreciation

Dr. Depreciation 20

Cr asset 20

Now you received a credit note 30 saying we sold bad quality 

Dr. Bank 30

Cr. Asset 30

Everything tallied so far!!

Or we use retrospective changes here. Adjusting WDA is the same in both the methods because you have to claim. I don't know the claiming method. Put your query on tax section

My topic about excess depreciation is correct. So you need a tax perspective not accounting.

Now retrospective changes. It nalso has extra depreciation because you have already filed a claim on TAD.