Depreciation on Revalued machinery

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Amod Ketkar (Querist)
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14 October 2008 We have purchased 20 machines from USA in the last 2 years for 10-12 lakh each from shutdown units. The actual cost of each these units today is approx. 90 lakhs new.
Can we revalue these machines and claim depreciation on the revalued amount and will Income Tax allow this?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 October 2008 While revaluation is your prerogative, the Income tax department will recognise actual cost incurred by you only and not the revalued figure.

CA Bosu babu

CA Bosu babu (Expert)
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21 October 2008 I will agree with Mtr.Srinu....

Hiral Raja

Hiral Raja (Expert)
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20 November 2008 There is no concept of revaluation. Income tax will allow depreciation only the WDV of block of assets.

Revaluation can only be done only for books of accounts. It has no effect on IT computation whatsoever.

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