Asset damaged by fire

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2016 Dear Experts,
The block wdv was 167670/- as on
1/4/2015 and this block is consist only one
Asset however the said asset has been
Damaged due to fire as on 16/8/2015, also was not insured,
Query...1) weather dep as per IT will be charge
for AY 2016-17 or not if yes on which value..2)
How much dep. Will be charge weather 15%
Or 7.5%

Thanx & Regard
Raj kumarm

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 May 2016 depreciation can be charged, with full rate.

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2016 Sir.. No 15% depreciable block is left inspite
that dep is allow unless the block (asset)

Upgrade to CAclubindia Pro. Subscribe Now!

CA ALOK KUMAR

CA ALOK KUMAR (Expert)
Follow

09 May 2016 If block of assets ceased to exist due to fire, entire WDV is required to be debited to P&L A/c. No depreciation charged. For further query, you may write us at info@wealth4india.com or call us @ 9266242424. Alternatively you may Logon to www.wealth4india.com

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

09 May 2016 1. If damaged machinery is kept 'IDLE' , cannot be depreciated since 'USER TEST' fails.

2. If under repair, can be depreciated at full rate. Inference :- CIT Vs. G.N.Agrawal 75 Taxman 30 (Bom).

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

09 May 2016 "damaged" is the word used by the querist. Querist to throw light on the same.

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2016 Sir the entire asset has been completely
damaged not in condition to be repair
Hence the entire wdv will be debited in
profit & loss account and while computing
income it has be added back...
However No dep. Is allow if no any other
assets left in the block..

Pls clarify is this correct treatment...

Rupesh Jain

Rupesh Jain (Expert)
Follow

09 May 2016 if your assets is exist on the end of the year how can you take claim of deprecation.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2016 Sir.. No asset is exist in the block only
One asset was in the block which has been
Completely damaged by fire also not in
Condition to be repair in this case
As per my knowledge the entire wdv will be
Debited in profit & loss a/c and while
Computing income it would be added back.

Your view pls...