Hi,
Whether depreciation can be claimed on assets purchased but business operations are not started yet?
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claiming depreciation
Replies (4)
Unless the asset is put to use, no depreciation can be claimed over it.
what if asset is ready to use but business operations r not started
In this case also you cannot claim depreciation on the asset.
It is clearly mentioned in the act that depreciation will be charged only when the asset is "put to use" not when the asset is ready to put to use. ( As per the case law Dinesh Kumar gulab Chandra Agrawal, Bombay High Court)
It is clearly mentioned in the act that depreciation will be charged only when the asset is "put to use" not when the asset is ready to put to use. ( As per the case law Dinesh Kumar gulab Chandra Agrawal, Bombay High Court)
But u/s 32 put to use is being defined as active use ND passive use both...so do we have to consider that ND claim depreciation r nt...m confused between that
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