Is depreciation compulsory ??


This query is : Resolved 

09 August 2012 AN ASSET PURCHASED IN 2011-12 PUT TO USE IN 2011-12. CAN I POSTPONE THE CLAIM FOR DEPRECIATION AND START CLAIMING DEP. FROM SECOND YEAR.? I NEED SOME DECIDED CASE LAWS TO SUPPORT POSTPONING DEPRECIATION TO NEXT YEAR.

THANKS.

09 August 2012 No way. Under income tax as well as under sound principles of Accountancy... this is not correct approach.

09 August 2012 BUT I AM DESPERATE TO POSTPONE CLAIMING DEPRECIATION. IS THERE ANY WAY OUT.? THANKS..

AND , AT THE MAX, THE A.O. CAN ALLOW DEPRECIATION IF THE CASE IS UNDER SCRUTINY.? WHAT IS THE MAXIMUM LOSS POSSIBLE OTHER THAN THAT IF I DONT CLAIM DEPRECIATION ??

09 August 2012 Keeping the LUST/WHIM/ FASCINATION for postponement intact, there is no other way.

13 September 2012 Whether Dep is claimed or not AO has to allow Depreciation.If you desparatly want to postpone it, which is not judicial accounting practice, then you may do like this. I fyou want to avail the depreciation after three years(say), calculate WDV of the asset as if depreciation allowed from the year asset put to use,and arrive at the Depreciation for that year.


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