Expenses claim earlier year, can reverse current year

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 a project under construction of a company and claim depreciation and expenses on machine put to used in earlier year. but now company want to capitalized these expenditure had claimed earlier year. can do it.
please help

Amol S Joglekar

Amol S Joglekar (Expert)
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27 November 2014 The answer is NO.
The very principle of CONSISTENCY is vitiated.

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 thanks for reply
but company's project under construction so principle of consistency how vitiated

Amol S Joglekar

Amol S Joglekar (Expert)
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27 November 2014 The why did you claim the depreciation?

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2014 by mistake now to rectification

Amol S Joglekar

Amol S Joglekar (Expert)
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27 November 2014 There you are!
This itself is liable to be regarded as INCONSISTENCY.

See the point is simple....when you claimed depreciation, you were aware of the conditions as to "putting to use and all that" Now for want of some FUNDING or otherwise, writing back of expenditure of earlier year is NOT a prudent practice.

Rupesh Jain

Rupesh Jain (Expert)
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28 November 2014 r/sir

its mean that you make the accounting and filing the return by chance.
before doing any action you aware that fact and pls read the verification/declaration of income tax when you sign the return.