RELATED TO section 40(A) 3
This query is : Resolved
12 November 2010
IS DEPRECIATION IN RESPECT OF ASSET ACQUIRED FOR RS. 100000 IN CASH IS ALLOWABLE WITH IN THE PERVIEW OF SECTION 40(A)3.
12 November 2010
Yes because, as per my understanding, depreciation is an allowance and not an expense to be considered under section 40 A(3).
12 November 2010
Respected Warrier sir
Allowing Depreciation in the mentioned query would defeat the purpose of Section 40A (3).
Please Elaborate the difference between an allowance and expenses.
Regards
CA Tilak Agrawal
Allowing Depreciation in the mentioned query would defeat the purpose of Section 40A (3).
Please Elaborate the difference between an allowance and expenses.
Regards
CA Tilak Agrawal
12 November 2010
Sir,
The amount paid for purchase of Capital Asset worth Rs.1,00,000/- is not the amount, that we are claiming expenses.
We are claiming depreciation on the Capital Assets that has been purchased, And not the purchase of asset itself perse.
There shall not be any disallowance atleast U/s 40A(3)
I expect other experts may not agree this view.......
The amount paid for purchase of Capital Asset worth Rs.1,00,000/- is not the amount, that we are claiming expenses.
We are claiming depreciation on the Capital Assets that has been purchased, And not the purchase of asset itself perse.
There shall not be any disallowance atleast U/s 40A(3)
I expect other experts may not agree this view.......
12 November 2010
Tilak Ji & Madhusudhan Ji
As per my understanding the issue has to be viewed in a different prespective.
1. The crucial word used in section 40A(3)is "expenses".
2. Whereas the crucial word in section 32 is "allowance".
"Expenses" cannot be equated with "allowance" and therefore 40A(3) cannot be applied to section 32.
As per my understanding the issue has to be viewed in a different prespective.
1. The crucial word used in section 40A(3)is "expenses".
2. Whereas the crucial word in section 32 is "allowance".
"Expenses" cannot be equated with "allowance" and therefore 40A(3) cannot be applied to section 32.
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