cash payment exceeding 20000 in case of fixed asset purchase

Refer this link

this question is discussed erlier also

/forum/re-depre-allowability-sec-40-a-3-55686.asp

CASH PAYMENT EXCEEDING 20000 RUPEES FOR PURCHASE OF CAR IS ALLOWED BECAUSE IT IS NOT AN EXPENDITURE BUT DEPRECITION IS DISALLOWED BECAUSE IT GOES IN PROFIT AND LOSS ACCOUNT .BUT DEPRECITION IS NOT PAID IN CASH SO MOSTLY COMPANY ALLOWED IT .

Originally posted by : Kalpesh
	Just add on - as per Act once the assets enters the block its looses its identity and hence its impossible to exclude the depreciation peratining to specific assets.

AGREED WITH KAPLESH JI

if a mobile phone is purchased during the year for rs. 32772 and another for 26000 (both on different dates) and both the payments are made in cash.. will the depreciation be allowable to be claimed?? or will it be disallowed..??

we are the partnership firm would like to know if payment for purchase of a fixed assets exceeding 20000 is made in cash, would provisions of Sec 40A(3) be invoked on the depreciation claimed on the asset... pls throw light on the matter...if possible 

Dear All..., Depreciation is allowance and not an expenditure..

Therefore it is MANDATORY IN NATURE  irrespective of whether a company cliams it or not..

Thanks & Regards

Vikrant Deshmukh

md.vikrant @ gmail.com