15 May 2010
If we can adjust the "loss on sale of machinery(WDV asset)" against the income of the same business. Or adjust only against the profit on sale of machinery.
16 May 2010
Loss on sale of Machinery is a Short Capital Loss and will be set-off only against the income earned under the head Capital Gain.
No adjustment permitted against the business income. You may adjust the same loss with any income which is taxable under the Capital Gain whether it is earned against profit on sale of machinery or any any other asset.
CAclubindia
