Depreciation on sale

in block concept depreciation is provided as fololows

                           opening w.d.v     xx

               add: purchase               xx  

                                                        xx

            less: sale proceeds(*)   xx  

              closing w.d.v                   xx

*sale proceeds is amount of sale and not the w.d.v of asset sold.

since deprecition is not charged on the sale amount........

No depriciation is allowed on any assets which has been sold. Depriciation is allowed if the asset is owned by the assessee on the last day of the previous year.

As per companies Act, depreciation upto the date of sale shall be calculated and deducted from the actual opening balance of that yr.......

As per Companies Act, Schedule XIV, Notes : Point no.4

"Where during any financial yr, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such asset shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed."

Whereas as per Income tax act, no depreciation is given in the year in which the asset is sold...........

Exactly.......Thanks Ashi

 thanks ashish-for explanation