Depreciation

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Hello !!!

As per Explanation 5 to section 32(1) :It is mandatory to claim. Depreciation shall be allowed to the assessee whether or not the assessee has claimed deduction in respect of depreciation in computing his total income.

Can anyone let me know the reason behind this in otherwords what will be the consequences if it is not mandatory.

Thanks in advance

Replies (3)

Dear Tahseen,

In the past there were some cases where assessee has not claimed depreciation because it was advantageous to them & various judgements have said that Dep is not mandatory to claim..

To overrule these cases this amendment was made..

Consequences - If assessee has not claimed depreciation even then AO at the time of making assessment shall allow the deduction of depreciation.

Thanks for your reply.

 

hi

If an assessee doesn't claim depreciation in ROI, then ITO has power to deduct depreciation from Total Income while making Assessment Order.

Claim for Depreciation is not depended upon assessee's convenience  .

 

vaibhav  

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