14 March 2008
i.e surlplus of transfer in case of depriciable assets over and above the W.D.V. as per sec. 43(6) .
Balance charge is taxable under section 41(2) in the previous year in which sale price, insurance, salvage or compensation money becoming due. , if any additional compensation is received. it will be taxable in the year of receipt - CIT v/s United Provinces Electric Supply co. [2000] 100 taxman 134(SC)
14 March 2008
Section 50A does not use the word balancing charge. It only says what should be the cost of acquisition in the case of depreciable asset. The balancing charge results if the amount is negative while computing the figure u/s 41 (2)
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