Depreciation is allowed or not

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2012 My uncle is a Doctor(Professional). He has a car on which he is taking depreciation u/s 32(1). Now he wants to buy another car. Whether he can claim depreciation on such car also. (He is practicing alone)

CA. Rajesh P. Ahir

CA. Rajesh P. Ahir (Expert)
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22 June 2012 Dep. is allowed on the assets use in the Business or Profession.
Here if it is used for Profession of Dr. than Dep. can be allowed. But on query from Department it has to prove that the second car is also used in the Profession.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 June 2012 Even, in case of a Single Car held by the assessee, the AO disallows certain percentage of car expenses and Depreciation, taking the contention that the car must have been used for personal purpose also. The assessee has to accept.
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The claim of Depreciation on Second Car is likeley to be disallowed as the expert Mr Ahir has discussed. However, if Log Book is being maintained, then in such circumstances the AO has to rely on that while deciding the quantum of disallowance.
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K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
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08 August 2012 @ Paras Bafna

Sir, Is a Doctor who has both income from salaries and practices as a consultant claim depreciation on the car he uses for his travel?

If yes, is it available even if he doesnt maintain accounts for the business?