Non operating company

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vijaykumar (Querist)
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17 September 2011 one of the unlisted public company is constructed his own building and plant & machinery for the financial year 2010-11 but the production is started at financial year 2011-12. what is the procedure for filing of income tax returns and what is the procedure for depreciation calculation for un completed building and plant & machinery .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2011 1) As per section 139(1) of the IT Act,1961 the company has to file the IT return for the FY 2010-11 irrespective of the fact that production is not commenced.
2) Since the building is not completed and production has not been started in FY 2010-11,the asset being not put into use, deprection need not be charged in the books of accounts and for tax purposes.

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