ABC Private limited has 3 properties of which, the company charged depreciation @ 10% on 1 property and 5% on other 2 properties. The depreciation was charged upto F.Y. 2005-06. However, w.e.f. 01.04.2006, the company stopped charging depreciation due to discontinuation in business. Now in F.Y. 2011-12, the company has sold one of the premises out of 5% block. Now the questions arises are:
1. The property sold is whether Long Term Capital Assets or Short Term Capital Asset?
2. What will be the cost of property for calculating capital gain - WDV as on 31.03.2006 or to calculate the WDV as on 31.03.2012?
3. Whether the company can claim exemption u/s 54EC?
CAclubindia
