A ltd is a power generation and distribution company. A new distribution lines were laid out in 2011-2012 in an area cost of such distribution lines amounted to 100 Crore.
As per the govt. Regulations such company is allowed to recover 30% of the cost from the customers of that area including in electricity bills .
The company recovered the cost as follows:-
in 2013-2014 rs 5.00 Crore
in 2014-2015 rs 4.00 Crore.
The company claims depreciation on original cost method under section 32(1)(i).
Rate of depreciation –15%
How can you compute depreciation on allowance under section 32(1)(i) for the A.Y. 2016-17
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