For capitalisation purpose it doesnt matter that property is regd. Under whose name. If the company has paid the considration and the assets is in possession of Company than it should be capitalised in the books of company.
"In respect of depreciation of— (i) buildings , machinery ......owned, wholly or partly, by the assessee and used for the purposes of the business or profession.....
There is a wide definetion of Word "Owned". Useing that defination and past case laws a company can claim the deduction of Dep allowances on such building.
My both ans are bsed on the assumption that such property is only registered in the name of Director and Income and any interest generating from such building, or use of such building is exclusive for the business of company and company has paid the purchase considration, than THE COMPANY IS ELIGIBLE FOR THE CALIM OF DEP. AND THE COMPANY CAN CAPITALISE THE ASSETS IN ITS BOOK.
04 June 2011
Well one way out can be through a joint venture agreement between director and company for use of asset for specific project, then in such case depreciation can be claimed (as stated in views of Mr Rakesh Jain)
CAclubindia
