Query on depreciation
This query is : Resolved
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.
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
(Expert)
18 January 2012
Yes an assessee can do it as not charge to depreciation because asset was not used in previous year.
Message likes :
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sahil jain
(Expert)
18 January 2012
He will have to charge the depreciation as the asset was used till december 2011.
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.
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.
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