Purchase of fixed assets

yeah. An assessee can make payment in cash exeeding Rs.20,000 in cash in case of purchase of any fixed assets..

yes you can buy capital expenditure through cash in any extent... as there is no limit for cash payment for purchase of capital expenditure..

yes                                                                                            

Agree wit above views.

Thanx to all for replying my query............

One more thing can you give any reference of IT Act or any case law..

this will be really helpful

thanx in advance

Hi DS

Sec 40A(3) doesn't apply in respect of expenditure which is not allowed u/s 30-37.

But if an assesse purchases depreciable capital asset for business purpose (in cash above 20000) , then the dep will be not allowd by this section, as dep is covered under sec 32.

No reference is needed.

In 40(A)(3), it is written that you will not be allowed deduction of the expenditure if it is paid in cash in excess of 20000.

Now we any ways dont claim deduction of a Fixed Asset. So there disallowance is out of question.

I do agree with Ashwani that we are not claiming any deduction for fixed asset, so disallowance is out of question. But I'm talking abt its dep, which will be disallowd by the virtue of sec 40A(3).

Originally posted by : CA Ashwani Agarwal
	No reference is needed.   In 40(A)(3), it is written that you will not be allowed deduction of the expenditure if it is paid in cash in excess of 20000.   Now we any ways dont claim deduction of a Fixed Asset. So there disallowance is out of question.

Thanx Sir, I got your point...........

But as Sanath Kumar said about the depreciation on such asset which is purchased by making payment in excess of Rs. 20000 through cash..........

Can we claim the depreciation on such asset.........

Plz clarify

Originally posted by : anil.............
	Hi sir ,hear one more thng is like this rule is not applicable for purchase of a capital asset not meant for resale r repayment of loan

Thanx Anil for taking part in the query but now my question is only that

wheather the depreciation on purchase of such capital asset (purchsed through cash) will be allowable or not?????

Depreciation will be allowable 

Please ref this link

https://taxlawsjournal.wordpress.com/category/income-tax/disallowance/

thanx

Read Para 49.3-2 (5th point)  of Taxmann , Direct Taxes Ready Recknor (AY 2011-12 & 2012-13) by Dr. Vinod K.Singhania