Loss by fire

This query is : Resolved

Yasmin Salim Shaikh (Querist)
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12 September 2009 With regards to the query asked earlier about the amount that can be claimed if assets are lost by fire, replied by Mr. Mishra, some further clarifications r reqd.

The case was : A Partnership firm has lost all its assets in fire, then wont Sec 37 disallow the loss from being claimed bcoz it is not the Expenditure incurred for the business?

Further the firm is not in receipt of any insurance claim nor did it have any.

Tahnks & Regards.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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12 September 2009 you can claim depreciation u/s 32 . Section 32(1)(iii) allows following amount as deduction:
in the case of any building, machinery, plant or furniture in respect of which depreciation is claimed and allowed under clause (i) and which is sold, discarded, demolished or destroyed in the previous year (other than the previous year in which it is first brought into use), the amount by which the moneys payable in respect of such building, machinery, plant or furniture, together with the amount of scrap value, if any, fall short of the written down value thereof :

Provided that such deficiency is actually written off in the books of the assessee