Re-compute Depreciation as loss on sale of motor car Wrongly debited to P&L account: ITAT

Pearl Freight Services (P) Ltd. Vs. ACIT (ITAT Mumbai)– We have observed that the assessee sold motor car but there were other motor cars also existing in the block of assets and the said block of asset of motor car has not ceased to exist as on 31-3-2009. The assessee has claimed loss on the sale of motor car of Rs. 26,686 which was wrongly debited to P&L account, however the assessee is entitled to the depreciation on the block of asset consisting of motor car remaining after crediting sale proceeds of the motor car sold during the year and to that extent depreciation need to be re...