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Assets of previous years

amit jain (Chartered Accountant) (532 Points)

01 November 2011

If for an assessee some of the assets bought in previous year were not shown in the books of account, so can now they be introduced in the books for present year

and will be there be any consequences?

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4 Replies

N.J.R (Practice) (346 Points)
Replied 02 November 2011

Reason for ommission?

CA Tarun Jagdish (8893495263) (153 Points)
Replied 02 November 2011

When that Asset was acquired, U would have paid through Cheque rite .. In such case hw will your BAnk statement tally with that of Your Bank Account. ..

Section 32 states 2 conditions to be satisfied.

Asset must be in your possession

It must be used for the purpose of your businbess

No where IT ACt says if u dont claim depreciation in the current year, you cannot claIM NEXT YEAR.. So you can claim Depreciation..

From Accounting point of view too u can claim depreciation of previouse year also as Prior Pewriod Expense and Asset can be recorded on the actual date of purchase..

amit jain (Chartered Accountant) (532 Points)
Replied 02 November 2011

Actually in previous year some of assets purchased in cash were left due to assessee's mistake or were acquired through inheritance.. so were omitted, and now they have sold it so can it be shown?