Section 40A

Dear Surabhi,

          the company has purchased a Capital asset. So there is no bar on the company to claim depreciation

Dear friend,

I am agreeing with CA.G.Muguntha Narayanan

You can refer Circular No 34/1970 issued by CBDT.

40A(3) is not applicable on the purchase price paid for fixed assets.

Please disbelieve the reckoner.

i agree ...

No 40a 

u can make payment in cash for purchasing capital asset.

section 40A would not attracted since it is applicable only to revenue expenditures and not to capital expenditure.

Regards,

Manoj

Section 40A(3) is applicable only to revenue expenditure.
 

section 40A(3) is applicable in respect of an expenditure claimed as deduction under sections 30 to 37 since purchase in ur case is of Depreciable capital asset such expenditure will not be allowed under section 30 to 37 hence section 40A (3) not applicable .

thanks

Originally posted by : Phoenix
	Dear friend, I am agreeing with CA.G.Muguntha Narayanan   You can refer Circular No 34/1970 issued by CBDT. 40A(3) is not applicable on the purchase price paid for fixed assets.   Please disbelieve the reckoner.

Thanx Phoenix

I was in search of this circular since days..:)

Originally posted by : CA.G.Muguntha Narayanan
	Dear Surabhi,           the company has purchased a Capital asset. So there is no bar on the company to claim depreciation

I m agreeing with Narayanan Sir.

All the coments are nice this is right that Sec 40A not applicable to capital expenditure and depreciation is allowable even if amount paid in cash over & Rs 20,000/-

"All the coments are nice this is right that Sec 40A not applicable to capital expenditure and depreciation is allowable even if amount paid in cash over & Rs 20,000/-"

I agree with Mayank.

THANK YOU EVERYONE FOR YOUR REPLIES