to ca professionals,
If assesseee has not claimed depreciation on building ever and has sold away that building this year at such a high price that that block gets over/ negative/nil.
is it a short term capital gain u/s. 50?
(my view is if depreciation is not claimed in past, concept of block of asset cannot come.
at the most, it will be business profit (not short term cap. gain).
any views?
regards,ca kunjan
For what purpose building used for?
it was main and only office of of a jewellery trading firm.
now they shifted to gujarat. so mumbai office is sold away n they sitting on rent in surat.
If depreciation was not claimed, whether the building was declared under fixed assets or as investment in BS?
fixed asset in building block only. just strangely no dep was claimed (accoountant used to give explanation we thought value increases of buildihng so since many years no depreciation)
i fear--> will department forecfully grant depreciation since it was pourchased n make it depreciable asset n then tax it as short term cap gain u/s. 50?
Yes, it can happen. But check the business owner & the building owner relationship first.
Is it proprietorship with same individual owner of the building? or different.
Assessee is a firm. office also in firm's name.
assessee has bought undedr construction office (possession not taken) so i am using that as block continues as word is acquired. I wont claim dep on new office as not put to use.
god help assessee,
anyways, ty sir.
ty.
new asset is fully paid for but under constrution. anyways, ty for ur time sir
Is it not lower of carrying amount or fvlcd when fixed assets are disposed as per as 19? If this is the case, asset will be depreciated
19? Means as 19 on leases? Sir it's ownership office...i didn't get ur point sir.
Sorry, I had a typo. I was referring to AS10 standard disposal and retirement criteria.
| Originally posted by : CA Kunjan Shah | ||
 |
fixed asset in building block only. just strangely no dep was claimed (accoountant used to give explanation we thought value increases of buildihng so since many years no depreciation) i fear--> will department forecfully grant depreciation since it was pourchased n make it depreciable asset n then tax it as short term cap gain u/s. 50? |
 |
Depreciation is allowed irrespective of the claim as per explanation 5 in section 32.
I appreciate the owners dream of appreciating the building. Nowhere I read that depreciation is compulsory.
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