Can an asset be reclassified to another block( say dep rate 15%) in the current year vis a vis its existence in a different block (say vis a vis 100%) in the prior years? To elucidate, temporary fixtures (nature of lease improvements) were purchased in the second half of the prior year and as a result only 50% of the amount was claimed in that year. However, during the current year, the company has reclassified the same by transferring the opening WDV into the furniture and fixtures block and consecutively only 10% of depreciation is allowed. Is such reclassification allowable? And is there any case law that addresses such a scenario.
Alternatively can the leasehold improvements be claimed as revenue expenditure (in light of several judgements)?
CAclubindia
