Depreciation post application of sec 44ad

Neha Bhattar (none) (170 Points)

24 July 2013  

A firm had been filling its return under sec44 AD & AE... it has been showing fixed assets at its purchase price(100000) and no depreciation was charged to P\L Account.

This year, it has gross reciepts of around 2 crores.. so its accounts need to be get audited...

do I need to show dep on 100000, considering this as the wdv or need to calculate dep for previous years as well???

If I charge dep for previous years as well,then won't it understate the net profit of this year...???

Kindly reply... Thanx in advance...