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Depreciation on purchase from auction sale
X company purchase a factory Land & Building through auction sale from Bank in January. Banker was issued Sale Confirmation Letter in Jan itself, but the company was not registered the property with Revenue Authority. Can the company capitalize in the month of March and avail the Depreciation. Pl clarify
Replies (1)
Yes company can capitalize Factory Land & Building in monthof January, because sale confirmation letter issued by the bank in January itself. Registration of property is just formality. So, it should be capitalize Jan and avail depreciation for 3 months.
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