Abhas Halakhandi (Associate Consultant) (41 Points)
21 February 2016Dear Friends,
I am dealing one case where assessee has purchased Particular Fixed Asset in cash exceeding Rs. 20000/-. Assessee has received Assessment notice which disallows depreciation on that particular asset u/s 40A(3) due to the reason that it has been purchased in cash.
Request you to please quote any case law which supports non disallowance of depreciation u/s 40A(3)
Aanand Jha
(Employed)
(692 Points)
Replied 22 February 2016
Purchase of capital assets on which 100% or even normal depreciation allowable does not constitute expenditure and is not covered by Section 40A(3)
CA GOKUL RAJ R
(Chartered Accountant)
(151 Points)
Replied 22 February 2016
Dear Abhas,
40A(3) does not applicable to Capital Expenditure. Here is a Case law:
Kanshi Ram Madan Lal Vs ITO
Thanks
CAclubindia
