Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2013 Director has purchased a motor car in his own name & the same is used for companies business purpose.Can the company claim Depreciation & the relevant day-to-day expenses like Diesel,Repairs & Maintenance under the companies books of accounts.

Pls reply as soon as possible

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 September 2013 Rectification:

Yes, company can claim on depreciation..
As per recent Case law...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 September 2013 Company can claim depreciation for the purpose of Income tax Act,1961 provided the cost of the car is met by the company. though registered in director's name.

Citation :- CIT Vs. Navdurga Transport Co. [1999] 235 ITR 158 (All.) can be relied though delivered in a different context.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 September 2013 Agree with expert.........