[aaykarbhavan] Depreciation allowable even though asset was written off in books without adjusting block as it had no scrap value

 

Depreciation allowable even though asset was written off in books without adjusting block as it had no scrap value

March 11, 2015[2015] 55 taxmann.com 29 (Delhi - Trib.)

IT : Where certain assets forming part of block of assets were converted into stock-in-trade by deducting nominal value of Rs. 1 from block of assets and whenever same were sold surplus was offered for taxation, depreciation on said asset could not be disallowed by reducing value of same from block of assets

IT : Where assessee wrote off fixed assets in books but did not make any adjustment to block of assets as there was no scrap value for such asset, value of said fixed asset would not be reduced from block of assets while allowing depreciation

IT : Where assessee's changed accounting policy of recognising revenue on installation and acceptance of goods at premises of customers as against recognition of income on delivery as followed in earlier years was in compliance with AS-9 of ICAI and it was consistently followed thereafter, such change could not be rejected

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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