Block of Asset & Capital Loss

This query is : Resolved

CA Alpesh Tated (Querist)
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06 November 2009 Respected Professional Members,

I have one query.

Our Co. deals with 2 products.
One is soap & other is Plastic pipes.
Different machines are there for both of them i.e. the Plant & Machinery for both are different identifiable Plants.

Can we treat both plants as different block of asset?

Actually, we had sold the P&M of Plastic Pipe Division and if treated as seperate block, we can claim Short term capital loss on it & continue claiming depreciation on P&M of Soap Division.

Pls. advise on basis of judiciary or legal decision.

Thanks in advance.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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06 November 2009 Dear Alpesh
in ur case there are two devsion in one single comapny so as per Sec. 32 read with rule 43 of IT Act u have to follow Block of Asset method for Dep.
therefor only for claiming Short term Cap loss u can not bifurcate, u have to simply deduct the sell amount of p&m of Plastic Pipe Devision from P&M Block