claim of dep

Big Bazaar  occupies 3 floors in a multiplex .

subsequently after 4 months it constructs another floor on its own exp.(on permission of the owner of multiplex).Can it claim claim depreciation fot that floor for income tax purpose?

Replies (1)

Yes.... it is Deemed as a Building

as defined by Explanation 1 to Sec 32 which reads as under...

Explanation 1 Where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, the provisions of this clause shall apply as if the said structure or work is a building owned by the assessee.

 

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