banner_ad

Depriciation problem

CA Final 355 views 5 replies
(1) if P&M sold then dep allowed or not in that P.Y.?

(2) if P&M transfer in case of amalgamation/succession.
is DEPRICIATION Allowed ?
Replies (5)
1) no.
2)yes , to amalgamated company on basis of days .
1. Reduce sale consideration from block of assets only and then apply depreciation rate. 2. In case of amalgamation and succession depreciation value is to be share proportionately on the basis of number of days by both the companies.

In first case depreciation cant be claimed in second case since its amalgamation so the amalgamator is not fully distinguish of his / her right so its not included in definition of transfer and hence depreciation can be claimed

1. First thing Depreciation is not Calculated on the sale of any assets rather it is calculated only on the year end and the balance amount of BLOCK. If the entire block is finished due to sale then depreciation is not Calculated rather Capital Gain is Calculated.

2. In case of Amalgamation:

Depreciation is Calculated on the number of days the assets has been used between Amalgamating and Amalgamated co.
1) Depreciation is not allowed.
2) Depreciation is allowed on the basis of number of days the assets.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details