Sale of office Premises by company

An office premises owned by Private Limited Company, is depreciated every year.

 After 10 years Company sells the office premises and buys a new one from sale proceeds plus loan.

1. How the capital Gain is calculated ?  cost of aquisition X  cost inflation index of the year of sale

                                                                        cost inflation index of the year of purchase

                                         or                           depreciated cost of aquisition X  cost inflation index of the year of sale
                                                                        cost inflation index of the year of purchase

2.  How the entries to be passed in books ?

3. Whether re-investment benefit will be available to company ?

Kindly advice, thank you very much

Valerian D'souza

Accounts manager.