01 January 2018
X Ltd scrapped entire block of assets at zero value . Opening WDV as per IT act 1 lacs and same amount showed as deletion.
In company act treatment as follows opening WDV Rs.53 lacs Depreciation till scrap date Rs.35 lacs Balance wdv Rs. 18 lacs Scrap value 0 Loss on scrap Rs. 18 lacs Will loss on sale allowed as short capital loss Assess has shown Rs .18 lacs in profit/loss account but in computation assessee has not given effect to such loss. Now what will consequence in income tax act in assessment? Will STCL loss will be allowed to set off or disallowed? Can AO invoke provision of section 271(1)(c) for furnishing inaccurate particulars?
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