Sale of fixed assets block

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2013 Company wants to dispose of its assets namely land and bldg, plant & mach , other assets as it has discontinued operations.

Query

a) Can it adjust profit on sale of land and bldg (Block A) agaainst loss on sale of other fixed assets (Block B) for tax purpose ?

b) can it adjust Loss on sale of Plant & Mach (Block C) from profit of Land & Bldg (block B) ?

c) Can it declare this as sale of business divison and thus entire block of assets goes out of books then what is the tax impact?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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10 June 2013 After adjustment of all profits and lossed against sale of the assets the surplus is to be taxed as short term capital gains. In case of net loss of block of any assets the same is to be carried over and is to be shown as assets and only y way of depreciation the same can be adjusted. The profit and loss of inter block cannot be adjusted. such as profit on land cannot be adjusted against loss on sale of car or other assets.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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