SOLVE IT PLZZZZZZZZ........

when  Scientific research asset is purchsed then it is fully debited to P/L A/C.

when work is complete and then machine is used for business then it has 2 treatment :

1. Firstly bring that machine into the block of assets. the cost of such machine into the block will be NIL (because it is already debited to P/L A/C). now provide dep. on that block.

if machine is sold then sale price will be reduced from that block.

Balance will be Short term capital gain or WDV.

2. Sold machine without using for business - in this case full sale consideration will be capital gain.

So to reduce tax liability bring machine into block and then sold.

thanks manish