CA. Gaurav Bansal (CA) (53 Points)
11 June 2010If fixed asset is purchased in cash above Rs. 20000/-, whether dep. on that asset will be disallowed by virtue of Sec. 40A(3) or not.
I have read in Ready Reckoner of Taxmann that the above shall be disallowed but the act is silent about this.
If it is disaalowed please give the circular/ notifacation number regarding its clarification at gauravbansal00776 @ gmail.com
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 11 June 2010
CA PuRvI M!$rA
(-)
(2260 Points)
Replied 11 June 2010
Sec. 40A(3) is applicable only on expenses exceeding rs.20000 by cash.....
RAJU
(LEARNER)
(1089 Points)
Replied 11 June 2010
Section 40A(3) states that expenditure will be disallowed whereas the depreciation on Fixed Assets is an ALLOWANCE and not an expenditure. Hence, 40A(3) is not applicable for purchases of fixed assets or depreciation thereon......
CAclubindia
