Samode Power Generation Ltd an electricity company charging depreciation on straight line method (SLM) on each asset separately, sells one of its machinery in June, 2020 for ₹3,40,000. The WDV of the machinery at the beg
CS Executive · Tax Laws · PYQS · December 2021
Samode Power Generation Ltd an electricity company charging depreciation on straight line method (SLM) on each asset separately, sells one of its machinery in June, 2020 for ₹3,40,000. The WDV of the machinery at the beginning of the year on 1st April, 2020 is ₹3,70,000. No new machinery was purchased or added during the year 2020-21. The shortfall of ₹30,000 between the sale value and the WDV of the machine shall be treated as:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Income Tax Act, 1961
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