09 September 2008
The company has block of assets as residential building.it consists of 3 apartments. Value of blaock of assets is say 100 During the current year company has sold one apartment say value is rs 400. So there is deemed short term capital gains of rs 300 as per section 50. Now company is purchasing one apartment of rs 400 so as to set off short term capital gains. If for any reason the new apartment purchased is not put to business use can the ITO disallow the asset to be included in the "block of assets" and hence resulting in short term capital gains? Or is it that ITO can only disallow depreciation on the new asset but inclusion in "block of assets has to be allowed??
CAclubindia
