In each of the following questions a short passage is given with one of the lines in the passage missing and represented by a blank. Select the best out of the five answer choices given, to make the passage complete and coherent.
But no depreciation is allowed on Live Stock i.e. Horses .Although the horses are in the nature of fixed assets in the hands of the owner, no depreciation is allowed under Income Tax Act. Instead when the animal dies or becomes permanently useless the entire value of the horse can be written off as revenue loss in the year in which it dies or becomes permanently useless. When the gross income exceeds the total expenditure, it results in net profit which will be taxable at usual rates of tax applicable to the person. ………………….. Although the live stock is in the nature of fixed assets of the owners buy them, maintain them, train them, and participate in races and Sell them or send them away to studs when they are useless.