Depreciation Charged on Land

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This query is : Resolved

CA GAURAV JAIN (Querist)

31 July 2008 A company constructs a building on its own land , and then capitalise both ,and charges depreciation on entire value.
Now it wants to write back the depreciaton on land.

Can it Do so?
Is there any Case Law Regarding this.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

31 July 2008 Capitalised both under what head? Obviously land can not be capitalised under any head other than land!

CA GAURAV JAIN

CA GAURAV JAIN (Querist)

31 July 2008 it was caitalised under building

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

31 July 2008 you will segrigate the same show different heads & dep will not be allowed on land

CA GAURAV JAIN

CA GAURAV JAIN (Querist)

31 July 2008 actually when the land was purchase that time it has not been entered into the books and the whole value together with the value of land was capitalised with building A/C and depreciation ws charged accordingly .
it was purchased in 1990 for 90 lacs and now the WDV is 60 lacs nw i want to write off the value of BUILDING frm WDV coz i want to reconstruct a new building on the same land??????????
in case i dont know the actual cost of the land so how should i compute thaht?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

01 August 2008 The actual cost of the land would have been declared in the valuation report of the registering authority. Based on that you can reinstate the value of land by writing back the depreciation thereon.

CA GAURAV JAIN

CA GAURAV JAIN (Querist)

04 August 2008 thank you

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