27 June 2009
the assesee sold factory land and building of a proprietary concern which was closed since last five years. cost of land and bldg is seperately shown in books. whether sale of land would be taxable as long term gain with indexation and bldg taxable as short term gain at deemed WDV u/s 50C(as unit closed for 5 years)
29 June 2009
Hi Anil, It is important to note how u have filed your earlier returns. Whether you have closed the books of accounts before 5 years & transferred all the assets to capital account or still you are showing the factory land & building to the asset side of business balancesheet even though no business is going on? Have you claimed the depreciation in earlier years? mail me details on ratansharma123@rediffmail.com
we have claimed depreciation in the earlier years, however, its balance sheet is showing status quo since the date it has closed. Its other proprietory concern is claiming dep. on assets excluding this unit since it is closed.
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