Loss by fire of cwip asset

CA abhishek Jain (Associate manager) (106 Points)

27 April 2016  

Hiii...

How to treat Loss by fire of Machinery lying in CWIP, whether it is Capital Loss or revenue loss??

Can we debit such expenses to P&L or Not? (Accounting treatment)

 

What will be the treatment for Tax purpose, whether such loss is allowable as business loss?

 

Thanks & Regards,

Abhishek