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Quiz for the week (17 Feb 2025) :

Akash Ltd has two undertakings engaged in manufacture of bricks and cement. The undertakings were geographically dispersed and maintaining identity. The cement unit was subjected to demerger to Prakash Ltd on 01.11.2023. The WDV of the assets covered in demerger was Rs.7 crores and the fair market value for the purpose of demerger was determined at Rs.20 crores. Depreciation for the assessment year 2024-25 was claimed on Rs.7 crores for the respective periods. For the assessment year 2025-26, the tax counsel of demerged company Prakash Ltd suggested claim of depreciation on Rs.20 crores and not on Rs.7 crores less depreciation of the assessment year 2024-25. Decide the validity of the suggestion.

Kindly mail your answers on or before 24th February, 2025.

Email your reply at quiz.taxpub@gmail.com

Answers :