27 December 2008
My friend not maintaining any books of account since his income/total receipts are not exceeding the limit specified u/s 44AA. Further he is preparing Statement of Affairs as on 31st March every year. At the time of computing his taxable income, he has deducted depreciation and other expenditures from the total receipts. Pl. confirm whether depreciation is allowable one even though books are not maintained and also quote if any case laws and income-tax sections.
27 December 2008
As per section 44AA, assess is specified person or not. If he is specified person then he is require to maintain such books of accounts and documents as may enable AO to compute their taxable income under the income tax act. If he is not specified person then he is not require to maintain any books of accounts. Futher, he can claim depreciation as per section 32 as per his previous policy and as per IT act.
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