Assessee is a company in business of diamonds. It had an imported car which it bought in 1995-96 for Rs.76 lakhs. The car was used for business purposes.It sold the car in 2004-05 at a price of Rs.7 lakhs.
Will it be business loss or long term capital loss?
Kunjan Shah
mumbai
022-30088351
kunjanshah @ india.com
2 Replies
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 10 May 2007
It will be a short term capital loss....as per IT act if all the assets of a block of assets are sold (on which depreciation was chargead) ....and if there is balance left in the block after reducing the sale price....the same is treated as short term loss
Rajeshmittal
(71 Points)
Replied 10 May 2007
Being the imported cars are not entitiled for depreciation under the Income tax the asset is eligible for long term capital gain.
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