Query on depreciation

This query is : Resolved

sandeep (Querist)
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18 January 2012 A is a Petrol Pump owner. He has charged Depreciation on his Capital Investment on construction of Petrol Pump during accounting year 2010-11. The Petrol Pump was running till December 2011.

Now, he has dismantled/ discontinued the Petrol Pump for future.

A does not want to charge depreciation for accounting year 2011-12 (ending on 31-03-2012) as he has discontinued the Pump.

1. Please let us know, whether ITO can charge the depreciation at the time of assessment.

2. If the assessment order is passed u/s 143(1). What will be the consequences of the ITO reopens the case u/s 148 and charge subsequently Depreciation.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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18 January 2012 Yes an assessee can do it as not charge to depreciation because asset was not used in previous year.

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sahil jain

sahil jain (Expert)
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18 January 2012 He will have to charge the depreciation as the asset was used till december 2011.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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19 January 2012 Agree with sahil jain,

Petrol pump was used upto December 2011, He can charge depreciation.

claim 100% rate of depreciation for the A.Y 2012-3.

Need not worry about Sec 143(1), 148 etc.