Weighted depreciation

 if any scientific research assets is come into block then its value will be taken as NIL and if such asset is sold then that amount will be reduced from that block,.

the amount less from research exp..... capital gain not arise

 hey the concept about biz gain from sec 41is fine for me..thats what u meant rite manish?? but i asked if thats the only asset in the block and its sold for 1.1 lakhs aftr claiming weighted depreciation will entire 1.1 be taken as sec 41(3) or just 1 lakh being the cost of the asset??

The cost of asset hav already been debited to ur Profit and loss a/c under sec. 35.

u have 2 treatment for scientific research asset.

1. asset bring in to block 

then it shall be treated as under :

WDV of block as on 1st  day day of previous yr       XXX

Add : asset used for scientific research                   NIL

                                                                                          XXX

Less : scientific research asset  sold                      XXX

if balance is positive then it is WDV elegible for dep. 

if balance is negative then it is short term capital gain.

2. If asset is sold without bring in to block then entire amount of sale price will b capital gain.