Even if you claim depreciation office premises, still you are entitled for long term capital gains – Tribunal

lawBy Accommodation Times News Services

By Vimal Punmiya, Chartered Accountant

 

OPINION

Querist………………………………………. M/s. PRASHANT CORPORATION

The Querist is a Partnership firm, Registered in Mumbai, The firm is involved in business of diamonds and garments and other business, Since last several years.

The Querist had their office premises in Prasad Chambers. The Firm was claiming depreciation on the said office premises, Since it was purchased. It was recorded under the block of assets headed as ‘Building/offices Premises. The said office premises was sold in the Accounting year 1992-93 for a consideration of Rs. 1,34,42,000/-.

In the same year the Querist  purchased office premises for a consideration of Rs. 1,37,30,000/- and was recorded under the block of assets headed ‘Building/office Premises’. The depreciation was charged on the same as per Sec. 32 of the Income tax Act. The W.D.V. of the block, as on 31-3-1993 was Rs. 3,74357/-.

After the Assessment year 1993-94 onwards no depreciation was claimed on the block ‘ Building /Office Premises’. Now the Querist wants to dispose off a part of the office premises for a consideration of Rs. 1,00,00,000/-.





Similar Articles

Leave a Reply

Top