During the course of audit i have come accross the following problem that is there is loss on sale of fixed asset which has been debited to the profit and loss account. The block of fixed asset yet exists as per provisions of income tax act. My question is whether the loss on sale of fixed asset would be added back while making the provision for taxation as per provisions of income tax act even though the block exists as per income tax act?
What would be the situation in case block of that fixed asset does not exist?
I have come accross this problem in almost every company the audit of which i have done?
So please send me the reply as soon as possible with reference to any particular section or circular if any,.