Depreciation

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vilas yeole (Querist)
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22 December 2012 my neighbour has filed income tax return and paid tax of rs 1 lac he is having company and filed return as a proprietor. the consultant had taken depreciation of only 1 tavera and not taken depreciation on zen car which comes nearly 20000.the consultant says tat u can take depreciation on only one car and not 2 but my neighbour is using the both the car for business purposes.i think so consultant is wrong wat u think should i file the revised return..plz reply at earliest.....

Pankaj Gupta

Pankaj Gupta (Expert)
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22 December 2012 I guess there is no proprietor concept in case of company.

vilas yeole

vilas yeole (Querist)
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23 December 2012 my query is for depreciation which is not solved............

Pankaj Gupta

Pankaj Gupta (Expert)
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23 December 2012 The formation of your query is not correct. Because there is no propreitorship concept in case of company. Rather there are directors who file their own return while the company files its own return.
But anyways.... upto my understanding of your query, The company can claim depreciation on any number of cars that is used for its business purpose. The depreciation will be allowed to the company only and not to director.
BUT I WONDER HOW YOU FILED THE RETURN AS PROPRIETOR OF THE COMPANY. PLEASE SPECIFY THE ITR FORM NUMBER THAT YOU USED.

naresh

naresh (Expert)
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24 December 2012 Agreed with Pankaj.
There is no concept of Proprietorship concept in case of a company

vilas yeole

vilas yeole (Querist)
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25 December 2012 itr 4 was filed in which depreciation for only 1 car was taken

Pankaj Gupta

Pankaj Gupta (Expert)
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25 December 2012 I think that your neighbor dont own a company but rather a proprietorship firm. And the name of the firm ends with such words like "company" or "corporation" etc because of which the confusion arose.

Pankaj Gupta

Pankaj Gupta (Expert)
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25 December 2012 Anyways...... If your neighbor uses both the cars for business purpose then he is eligible to claim depreciation on both the cars. The consultant is wrong at not claiming the depreciation. Therefore you can file a revised return and can claim the remaining depreciation also. But before doing so ask the consultant for not claiming that depreciation. This might be the case where he intentionally did not claim the depreciation due to the technical aspects of the case.

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