05 November 2009
One of my client has purchased trucks on loan. Loan is not fully paid.
only part payment was made, officer is taking view that why he should allow depreciation as the vehicle is still in name of seller as payment is not made in full.
05 November 2009
Depreciation is all about wear & Tear of particular assets.The loan amount whatever buyer has to pay is liability & trucks will be consider as a assets of buyer. So as per Sec 34 of IT Act, Depreciation is mandatory.
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