Tax treatment of Fixed Assets Written off

[Asked by Guest]

I want to know whether the amount of Fixed Assets written off is allowed as business loss under Income Tax Act ?? If it's allowed, then what is will be the depreciation on those assets as per Income Tax Act ??

P.S. The assets are destroyed, and can't be used.

AI Summary

Write-off of fixed assets: accounting loss treatment explained, tax admissibility depends on insurance recoveries and statutory analysis.
Whether accounting write-off of destroyed fixed assets is an allowable business loss under the Income Tax Act was queried. The discussion explains accounting treatments: reverse accumulated depreciation and remove fully depreciated assets; write off undepreciated carrying amount to loss when not fully depreciated; recognise gain or loss if sold; and consider insurance receipts. It provides journal-entry illustrations and administrative controls but offers no definitive statutory tax conclusion; one participant opined the write-off is an admissible expense.