Dear All
Our one of the client had sold some of plant & machinery during last year & also same has been returned back in same fininancial year becuase of no acceptance for buyer & said machinery not used during the last year also
is it he can avail depreciation on same Machinery
When the machine was sold it must have beeen reduced from the block of assets and when the sale is not completed it must be returned back to the same block of assets and depreciation can be claimed whether or not put to use as it was old machine of the block for which sale could not be completed and so put to use criteria is not to be seen.
I AGREE WITH THE ABOVE VIEW
YES AGREE WITH TOUFIQUE
I agree with TOUFIQUE VIEW
Am also agree with Toufique
yes it will be added back n depreciation will be allowable
Depreciation is allowable because assume if it was not sold and remains in Block of Assets, than also we have to take depreciation on it because depreciation is also provided due to effluxion of time on Old Fixed Assets,therefore depreciation is also allowable on it.
I also agree with the view given by toufique.
CAclubindia
