02 March 2009
Mr A has purchased assets for his business and later on he sold the assestto Mr B.Later on Mr A reaquires the same asset on hire purchase ? my query is that who will claim depriciation and what will be the cost
REACQUISITION OF ASSETS [EXPLN. 4 TO SEC. 43(1)] :
MR A can claim depreciation if following conditions are satisfied :
1. taxyaper owns asn asset and its used for for his business or profession. 2. asset cease to be his property by way of transfer and later on the same asset is reasquired by the taxpayer.
ACTUAL COST WILL BE :
1. actual cost of the asset to the assessee when he first acquired the asset as reduced by the amount of depreciation allowed as if the asset was the only asset in the relevant block of assets
OR
2. actual cost at the time of reacquition.
WHICH EVER IS LESS.
for example refer : taxmann`s direct taxes pg no. 262 AY - 2008-2009.
02 March 2009
Mr A has purchased assets for his business and later on he sold the assestto Mr B.Later on Mr A reaquires the same asset on hire purchase ? my query is that who will claim depriciation and what will be the cost
Explain the above in relation to explanation 4a to Sec43
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