depreciation in case of conversion

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Ishita (Querist)

19 January 2008 A partnership firm is to be converted to company in January 08. How shall be deduction of depreciation claimed for FY 07-08?
1. Total by partnership firm
2. Total by company
3. Proportionate on no of days
4. Full by both entities

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

19 January 2008 Depreciation for the period upto the date of conversion will be allowed in the hands of the firm and thereafter in the hands of the company.

Manish Agarwal

Manish Agarwal (Expert)

20 January 2008 In case of succession of business of aprtnership firm by a company the aggregate depreciation allowable shall be restricted to the depreciation computed as if the succession jas not taken placeand shall be apporyioned moangst the parties in the ratio of number of days for which the asset were used by them.
In brief the depreciation shall be allowed proportionately on no. of days.

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