Question

1. An electricity company charging depreciation on straight line method on 2 points
each asset separately, sells one of its machinery in April, 2019 at
1,20,000. The WDV of the machinery at the beginning of the year i.e. on
1st April, 2019 is 1,35,000. No new machinery was purchased during the
year. The shortfall of ? 15,000 is treated as- *
(a) Terminal depreciation
O
(b) Short-term capital loss
(c) Normal depreciation
(d) Any of the above, at the option of the assessee.​

Answer 1

each asset separately, sells one of its machinery in April, 2019 at

1,20,000. The WDV of the machinery at the beginning of the year i.e. on

1st April, 2019 is 1,35,000. No new machinery was purchased during the

year. The shortfall of ? 15,000 is treated as- *

(a) Terminal depreciation

O

(b) Short-term capital loss

(c) Normal depreciation