Loss on sale /scrap of assets
This query is : Resolved
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?
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?
01 January 2018
Loss is not allowable under income tax act. Revise the return if time is there. The AO may invoke 271 (1) (c)
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