Whether loss on sale of asset is allowed for a company .

This query is : Resolved

CA.Mirza Abid Beg (Querist)
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20 August 2013 Dear Sir,
whether loss on sale of asset is allowed for a company, if block ceases to exist and there is two losses one is for the income tax purposes and the other one is for the companies act purpose.
whether loss on sale of assets as per companies act is added and the loss as per income tax es deducted while calculating taxable income. please provide the treatment thereof.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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20 August 2013 The loss of a block is applicable to all assessee including company and the loss as per P & L is to be added and loss as per Income Tax Record to be allowed for calculation of the actual taxable liability. In case the block is continuing in that case the loss shall not be allowed and is to be adjusted in the block of the assets.