A businessman acquires a business asset as a gift (assume sec 56 doesnt gets attracted)from his relative(both are in the same line of business)
now as per explanation to sec 43(1) actual cost to acquirer(donee) would be wdv in the hands of previous owner
as per sec 43(6),wdv for the purpose of calculating dep is calculated as follows:
op wdv
add:actual cost of asset acquired during the year
less:moneys payable(sale proceeds/insurance compensation/scrap value)
cl wdv for claiming dep
now as per the above section nothing will be deducted from donors books as donor doesnt receives moneys as mentioned above.so due to this it is possible both for donor(subject to block of gifted asset continues) and donee to claim dep on the same asset..
AM I RIGHT???/PLZZZZ OFFER YOUR VALUABLE COMMENTS ON THE SAME
CAclubindia
