14 December 2010
This question is not governed under Section 40 a 3 as this section just talk about the expenditure and purchase of fixed assets is not an expenditue it is an investment, so fixed assets can be purchased in cash in excess of rs 20000/- and depriciation can be claimed in this respect.
15 December 2010
Yes. For purchase of fixed asswts sec 40a3 is not applicable. Like wise for claiming depreciation there is no condition that the asset should not have been purchased for cash
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