Disallowance of depreciation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 November 2013 My client was charging depreciation on building property right from the date of its purchase but it was disallowed by tribunal in one of the assessment year (AY 2007-08) as it was rented property & considered it as Income from house property.

Now I want to write back the whole depreciation which was claimed as business expenditure in the current previous year i.e 31st March 2013, can i directly credit it to profit & loss account?

If yes, is it to be considered separately as exceptional item of normal income?

Kindly support this with relevant section under Income tax act & relevant case law if any.

Thank you.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 November 2013 It will be an exceptional case and if there was no revaluation of the land value then entire amount should be credited to Profit and loss a/c.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 November 2013 Please mention the status of the property in current as well as in preceding years as
- whether let out or used for own business ?
- Details of Depreciation charged during the respective periods.
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Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2013 Status of Property is let out through out the period.
Letting out the property was shown as the business of assessee but tribunal disallowed it & axed under Income from house property as mentioned earlier.

Depreciation charged @ 1.63% SLM basis amounting to Rs 40,046/- hence cost of the asset is Rs 24,56,826/-

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