{"id":38378,"date":"2024-01-16T19:14:57","date_gmt":"2024-01-16T13:44:57","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=38378"},"modified":"2024-01-16T19:14:57","modified_gmt":"2024-01-16T13:44:57","slug":"transfer-of-depreciable-capital-asset","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/transfer-of-depreciable-capital-asset\/","title":{"rendered":"Transfer of depreciable capital asset ?"},"content":{"rendered":"<p><strong>Company A has transferred a depreciable capital asset to its wholly owned subsidiary company B during the year 2018. The WDV value in the hands of the company A as on date of transfer is Rs. 10 crs. As per the independent valuer report the value of the said asset is Rs. 8 crs. The company B has been claiming depreciation on WDV value of 10 crs. During the year (June 2020), company A ceased to hold 100% shareholding in company B.<\/strong><\/p>\n<ol>\n<li><strong>a) How to give effect to provisions of S. 47A and S. 49(3). Alternatively, would the situation be different if the capital asset would have been valued at Rs. 12 crores by independent valuer.<\/strong><\/li>\n<li><strong>b) Whether withdrawal of such exemption under section 47A will have any tax implication under section 56(2)(x) in the hands of WHOS since earlier the receipt was excluded from 56(2)(x) by virtue of 1st proviso to clause (x) of section 56(2).<\/strong><\/li>\n<li><strong>c) Whether Company needs to revise its of deprecation and how to give effect of same in Tax Audit and Return of income.<\/strong><\/li>\n<\/ol>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[1130,1129],"qa_category":[23],"qa_tag":[1153],"class_list":["post-38378","qa","type-qa","status-publish","hentry","qa_expert-chartered-accountant","qa_expert-mr-h-n-motiwalla","qa_category-income-tax","qa_tag-transfer-of-depreciable-capital-asset"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/38378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=38378"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=38378"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=38378"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=38378"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=38378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}