17 April 2013
Partnership firm running restaurant, purchase hotel premises and done satakhat/unregistered deed as on 05.08.2008 and taken possession of premises from Mr. 'B'. Money given for the premises shown in balance sheet(Unaudited) as under fixed asset head say Rs. 2600000/-.
In the audited balance sheet same amount shown under loans and advances head because registered deed not made up to 31.03.2009(FY 2008-09).
Further, during the FY 2008-09 under survey of premises firm disclosed Rs. 5000000/- as undisclosed income of FY 2008-09 given to Mr. 'B'for the purpose of Renovation of hotel Premises, Furniture etc.
In FY 2008-09 assessee claim depreciation on Rs. 5000000/- for half Year Rs. 250000/-. And no depreciation claim on Rs. 2600000/- as for the purpose of want to claim long term capital gain in future.
And in assessment proceeding depreciation is disallowed on the ground of no explanation given for showing Rs. 2600000/- under loan and advance head under audited balance sheet.
Now my question is whether any difference as advance given shown in loans and advances (as registered deed not ready up to 31.03.2009) or fixed assets on which no intention to claim depreciation.
Kindly give any accounting guidelines for the same.
CAclubindia
