claiming depreciation incase of merger

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Ananthselvaraj (Querist)
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12 September 2008 Mr. A carries a proprietary business. The business is being merged with a company.The transaction takes place on 30.11.2008.From 1st December onwards the company carries the same business. Now in the books of Mr.A, The depreciation has been claimed for 6 months (as per It Act)instead of claiming for 8 months. no details about depreciation treatment in the books of company. Is it right ? what is the relevant section to deal with ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 April 2012 Section 32 provides that in such a case the depreciation for the year shall be apportioned between the proprietorship and the company in the ratio of the number of days for which the assets were used by them.

Accordingly depreciation for the whole year shall be calculated and will be apportioned as under:

Proprietorship - 1.4.08 to 30.11.08
Company - 1.12.08 to 31.03.09

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