Mr. X Doing Goods Transport Business he used his lorries morethan 9 months in business and he was sold his lorries in the month of March-11 at this time he is qualifed to get depreciation on this asset please tell if its is possible any case law or section is availabe. my dought is sale year depreciation is not available but asset is used more than 9 months please help its urgent.
5 Replies
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 29 September 2011
Sir depreciation is allowed on the block of assets and it does not matter whether asset is in existence or not , so these lorries must be falling within the block of plant and machinery and i think there must be other plant or machinery in existence on which you must be claiming depreciation .But if all the lorries have been sold and no plant and machinery is in existence then no depreciation will be allowed.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 29 September 2011
if on the sale the existance of block ends than no depreciation can be claimed
ARUN KUMAR
(Financial Consultant )
(992 Points)
Replied 29 September 2011
agree with aditya..........................
komal sharma
(student)
(72 Points)
Replied 29 September 2011
If Mr X has sold all his lorries n other item on block then no Dep will be charged for Year 2010-11.but if any lorry or item in block still exist with Mr X then.Dep will be charged.
Asset is used for 9 year or more has no relevence for year of sale.
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