i want to write off fixed asset i.e. Car. i want to know any loss arised on that asset can be taken as allowable expenditure as per Income tax act.
(CA Final Student M.Com)
Replied 20 March 2010
Firstly an asset cannot be written off just like that. If the asset is damaged & its working condition cannot be restored then it can be written off or the appropriate word would be to scrap it off.
Secondly, regarding the income tax point of view the sales amount shall be deducted from the respective block of asset & suppose it is the only asset in the block then Net WDV (i.e opg WDV less sale value) shall be the short term capital loss.
(Owner @ T. N. Soni & Associates)
Replied 09 June 2011
Situation: Regarding Writting off an Assets from the WDV of the Assets as per Income Tax Act.
1) Assessee claimed Depr. as per company act. (e.g. Cost 10,000/- minus Depr. 6,000 bal. 4,000/- WDV)
2) Assets wrtten off in books of accounts (WDV 4,000/-)
3) No sale consideration was realised.
Whethere i can write off 4,000/- WDV of Companies Act from Current Opening WDV of Income Tax Block.
Op WDV as per Income Tax 15000
Disposed of 4,000 (WDV as per Companies Act.
New opening WDV as per Income Tax Act for the Current year Depr. purpose 11,000/-.
Is is possible?? if possible, refer any case law.
Replied 30 January 2017
ONE ASSET WDV VALUE 4752110, THIS ASSET DESTROYED SO HOW TREATMENT AS PER DEPRECIATION SCHEDULE II COMPANIES ACT 2013