Computers to be purchased in cash for pvt ltd co (Income Tax)

This query is : Resolved

m.a.p

( Author )
15 July 2012

hi all,
i m working in pvt ltd co and we want to buy computers amt to rs 250000/- can we buy it in cash is there any problem in income tax and if yes does it affect while claiming depreciation on that computers

CA PARAS BAFNA

( Expert )
15 July 2012

Does the Pvt Ltd company not have a bank account or sufficient balance therein ?
.
To purchase in cash creates suspicion in the minds of not only of the Tax Authorities but also of a common man.
.
However, depreciation can be claimed and is allowable.
.

m.a.p

( Author )
15 July 2012

thanks for your advice
we have bank accounts but just want to ask if we can buy it in cash or no