Asset purchased in Personal Name
This query is : Resolved
06 July 2010
In a partnership firm, there is a purchase of Car which is done in the name of Partner but payments is being made through firm in the last year. Now CA is objecting that it is of personal nature. Now what I have to do so that i can claim the dep in my books.
06 July 2010
https://www.caclubindia.com/experts/depre-422145.asp
Check above link.
Check above link.
06 July 2010
Its in the name of partner so it is personal nature and auditors point is justified. U should show as drawing and you can claim depreciation on car purchased for personal use
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06 July 2010
Its in the name of partner so it is personal nature and auditors point is justified. U should show as drawing and you can claim depreciation on car purchased for personal use
06 July 2010
Its in the name of partner so it is personal nature and auditors point is justified. U should show as drawing and you can claim depreciation on car purchased for personal use. But you can claim depreciation, by showing that it was using for official purpose
07 July 2010
Substance of form shall prevail. Merely because the asset is purchased in the name of the partner does not disentitle the firm to claim depreciation. Very often, such a course is taken for the purpose of convenience. Mptor vehicles are purchased in the name of directors.
If the vehicle is used for business purpose by the firm, depreciation can be claimed.
In a recent ruling the ITAT was examining whether membership fee paid to club in the name of Partner can be claimed by the firm as revenue expenditure u/s 37(1). The Tribunal ruled in favour of the assessee observising that in today's enviornment, life of executives is business centric and hardly have a personal life of their own.
In my view, same ratio shall apply here also.
If the vehicle is used for business purpose by the firm, depreciation can be claimed.
In a recent ruling the ITAT was examining whether membership fee paid to club in the name of Partner can be claimed by the firm as revenue expenditure u/s 37(1). The Tribunal ruled in favour of the assessee observising that in today's enviornment, life of executives is business centric and hardly have a personal life of their own.
In my view, same ratio shall apply here also.
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02 August 2010
Just to support the above opinions, depreciation is allowable on an asset prucahsed in the name of the partner and used for the firm we can refer to the case law,
Mohd.Bux Shokat Ali.256 itr 2002( rajasthan)
Where the dept held depreciation allowable
Mohd.Bux Shokat Ali.256 itr 2002( rajasthan)
Where the dept held depreciation allowable
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