Depreciation on Land and Building

Tax queries 1154 views 1 replies

A Company purchased a building. Agreement for purchase does not include a separate value for Building and for land on which it is constructed. Only one combined value is mentioned in the agreement. Now my query is that,for income tax purpose, on what amount i should claim a depreciation? on total agreement value or on only the value on building and not land? if only on value on building, then how will i bifurcate the value of land and building?

is there any case law for the same?

Pls provide the link ...

 

Thanx in advance

Replies (1)

In the following link there are some caselaws which are in respect of capital gains. see if the same can help u out- 

https://www.taxmann.com/FileOpener.aspx?sUrl=https://www.taxmann.com/TaxmannFlashes/[2010]018CAT00011(ART).htm&SearchID=3006


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