Friends.. pls post u r views on the following..
A firm carries on a business of leather.. During the year a factory building is demolished.. its WDV is 64472(for tax purpose and not as per books).. now for the demolished building 100% Depreciation can be claimed or no depreciation can be claimed or should it be treated as sales or WAT IS THE CORRECT TREATMENT......
Waiting for u r posts...
Regards
Deepak
the insurance claim proceeds received from the insurance company for the demolished factory building will be treated as sale proceeds of the building..it amounts to transfer of property u/s 45(1A)
As the block ceases to exist, depreciation on that asset cannot be claimed for that year. STCG will be calculated as per section 50 if Sale price is more than the WDV of the asset. in th reverse case it will be taken to P&L acc. as loss on sale of asset
I AGREE WITH "A Learner"
As the block ceases to exist, depreciation on that asset cannot be claimed for that year. STCG will be calculated as per section 50 if Sale price is more than the WDV of the asset. in th reverse case it will be taken to P&L acc. as loss on sale of asset
CAclubindia
