Depreciation disallowance

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Praveen (Querist)
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02 March 2012 Consider a Situation....

In a scrutiny assesstment(AY 2009-10), the AO has disallowed some part of the depriciation claimed by the assessee in his returns and the assessee has not yet made the payment of the taxes on such disallowance,and is willing to make payment against the order of the AO if it is possible to increase the value of asset by the amount of Depreciation disallowed FROM (AY 2010-11) for doing this last date to file revise return is 31.3.12

Now my question is what will be the impact of such disallowance on the WDV of the block of assets in the subsequent years AY 10-11.

Do we need to re-instate the figures of the block to give the impact of such disallowance

Wiating for the valuable suggestions of the experts

Thanks & REGARDS

CA Urvish Sanghavi

CA Urvish Sanghavi (Expert)
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03 March 2012 Sir,
I think it will have the impact of Increasing the Book Value i.e WDV, limited to the amount of Disallowance. Sir Depreciation is not an expenditure, so it can not be treated as other Expenditure like Advertising, Petrol etc