Block of assets mechanism does not require sorting of assets division-wise or unit-wise, even if accounts are maintained that way

Sec. 2(11) [which defines 'block of assets'] and Appendix-I of the Income-tax Rules, 1962 [which prescribes the rates of depreciation] makes no distinction between different units or different type of businesses. In other words, it does not stipulate that each unit or division of assessee has to be separately accounted for and shown as a separate block of assets.

In the instant case, the paper division of the assessee, which was sold off itself, constituted a separate and an independent block of assets. The High Court held that assets falling in a block of assets which belong to a division or unit sold off by assessee would not be deemed to belong to a separate block of assets for application of section 50 - CIT v. ANSAL PROPERTIES & INFRASTRUCTURE LTD. [2012] 20