14 December 2015
a intimation received which shows a demand due to cancellation of all amount of depreciation bcoz a mismatch apperent from record. Person shoews two head of 15% dep like tractor head separate and machinery head separate.
if we rectified online refund can be made. But problem is that tractor is sold by assessee in the year of demand and its loss is shown in the capital account
if we change the depreciation schedule and merge both machinery and tractor account. then depreciation shown at correct amount but capital account also changed. and next year capital opening also changed.
plz give me a view and why we shows loss in capital account debit side whether its a planning. IF THERE IS PLANNING PLZ TELL ME SOMETHING ABOUT IT.
14 December 2015
As I could understand from the query, you are advised to treat the block of 15% as a single block instead of 2 separate blocks while making the Computation of Income vis-s vis for calculating Depreciation as per the Income Tax Act 1961. . Depreciation as per IT Act is a separate calculation than the Depreciation as being shown in the Books of the assessee. . So while furnishing the book results, we can show depreciation as per Books of accounts in P&L A/c and accordingly show the Fixed Assets in the Balance Sheet at the WDV (arrived after providing the Depreciation as shown in P&L A/c). . You can have two different WDVs = one as per IT Act and another as per Books. .
14 December 2015
sir I agree with u, but problem is different
ALL INFORMATION GIVEN ABOVE IS AS PER AUDITED BALANCESHEET AND P&L ACCOUNT.
IF I WILL CHANGE DEP IN THE CORRECT WAY THEN INSTEAD OF DEMAND U/S 143(1). REFUND WILL MADE. BUT IN THE AUDITED BALANCESHEET LOSS ON SALE OF TRACTOR IS SHOWN.
SO PROFIT ISSUE IS CORRECTLY SETTLE DOWN BUT HOW I CAN CHANGE THE CAPITAL ACCOUNT OF AUDITED BALANCE SHEET WHERE THEY SHOWN LOSS
14 December 2015
First of all, you are not required to change your audited balance sheet as all the data furnished are correct in your opinion. . You are required to make change in the computation part only. .
14 December 2015
SIR EXTRACT OF THE CASE IN TABULAR FORM ARE- PARTNERSHIP FIRM- AUDITED P&L DEP= 23921 CAPITAL A/C OF BOTH PARTNER -30241(APP) LOSS ON DEBIT SIDE AND DEP SCHEDULE- 1. MACHINERY 15% 2. TRACTOR 15% BUT SOLD AT LOSS DURING THE YEAR AS PER INTIMATION THEY CANCEL ALL DEP AND MAKE ADDITIN OF 23921/- DEP. AS PER ME CORRECT DEP IF CONSIDER REFUND WILL COME BUT HOW I SHOW CAPITAL A/C IN RECTFIED RETURN AND FOR FUTURE YEARS CASE IS OF AY 2009-10
14 December 2015
1. You need not to change capital accounts. . 2. You modify computation in the following manner-
Net Profit as per P&L A/c (Say) 50000 Add: Depreciation as per Books 23921 Add: Interest & Remuneration to Ps 25000 . Less:Interest & Remuneration to Ps -25000
Less:Depreciation as per IT ACT -40000 (Depreciation on Total of (P&M and Tractor) Less Sales Consideration) . Net Profit of the Firm 33921 . In depreciation Schedule DPM show total value of P&M+Tractor. Deduct Consideration received on sale of Tractor and charge depreciation on the WDV @ 15% (assuming no addition during the year).
BUT IT DEPTT OBJECTION RAISE TO NAHI KAREGA BCOZ AFTER RECTIFIED RETURN CAPITAL ALSO CHANGED IN 2009-10 AY .AND NEXT ALL AY KE RETRUN WITH AUDITED BALANCE SHEET FILE HO CHUKKE HAI
14 December 2015
1. First of all think about IT matter and not about the Audited Balance Sheets of the Assessee Firm filed so far. . 2. No depreciation is claimed on a asset (Tractor) in the year of its sale. I can thus assume that you have calculated depreciation only on the P&M and that is of Rs 23621/-. . However, when the tractor is sold at loss, naturally its inclusion and deletion in the gross block of 15% increases the WDV in the subsequent years also, thereby enhancing the amount of depreciation claim. Revenue is going nothing to loss in such a situation. So, there will be hardly any objection from the revenue's side. . You can recompute the WDV as on 31.03.2015 and substitute the same for the purpose of calculation of Depreciation only. This can be managed by showing the difference of WDV as an addition in the block in the beginning of the year. . You need not to disturb Financial Data/ Books of the assessee. They have nothing to get by dealing with the same. .
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