19 May 2008
A company which was in business till financial year 2003-04 was claiming depriciation under Companies Act but stopped activities in that year and did not put its P&M to use in the financial year 2004-05. Can it claim depreciation for the FY 2004-05 and onwards.
19 May 2008
One of the basic conditions to claim depreciation u/s 32 of Income tax act is tht asset should be put to use during financial year...so going by the facts furnished by the company cant claim depreciation..
The answer to your question is no, it cannot claim depreciation as th assest was not in use during financial year.Hence depreciation on that cannot be claimed.
21 May 2008
Thank you for the reply but in one of the case law the kerala high court has held that even if the assets is in the state of ready to use we can claim dep.
21 May 2008
Balance Sheet is prepared as per Companies Act, so I want to know whether we can charge dep in p&l and claim it as an exp for the purpose of IT.
although i don't know facts of that case u mentioned but i am sure that it would be the case where business was on and assesse had put the asset for use but in actual never used it and asset was always ready to use. it is not relevant in ur case coz u have stopped business activities.
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