depreciation allowable on Cash transactions exceeding Rs 10000?

Yes, this asset is eligible to claim depreciation as payments did not exceeds 10000/- made to a person in a day. Amended provision is, where an assessee incurs any expenditure for acquisition of any asset in respect which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost of such asset.

agree with Sunil sir

thanks to all for such a prompt and proper reply
thanks

sir please tell me in which sub section above law is mentioned.

pls clarify, this applies even for a building or land purchase and any payment of cash more thn Rs 10000/- in a day, will be disallowed for calculating depreciation

yes Mr. Chandrasekar, this provisions of section 43 applies to all capital expenses irrespective of the nature of capital asset