if there is a business of transport.if the assessee purchases a truck in previous year as a standby(to replace the existing truck if there is any problem with it)but he didnt use that truck in the previous year...can he claim depreciation??????
please suggest...........
yes you can claim depreciation, the act says when an asset is put to use the assessee can claim depreciation.
In the given case the very purpose of an asset is to be an replacement and to use that in the time of emergency or as back up when other similar assets fails, by which its very much clear the asset is put to use by the assessee, so he is entitled to depreciation.
Karia Overseas
Ahmedabad
CA
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Shyam Joshi & Associates
Pune
B.Com
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