01 January 2011
DEAR SIRS, WE ARE A MFG UNIT (PARTNERSHIP)IN GUJARAT. WE PURCHASED A MACHINES WORTH 40 LACS IN FY 2006-07. BUT WE SKIPPED TO BOOK THIS PURCHASE IN BOOKS OF ACCOUNTS, TILL TODAY. ( SURPRISED ???? BUT IT IS TRUE ).MACHINE SUPPLIERS IS GIVING US DUPLICATE BILL (OF 06-07). ON THIS BILL, CAN WE BOOK THE MACHINE PURCHASE IN THIS YEAR ? CAN WE CLAIM DEPRECIATION ON IT ? THANKS IN ADVANCE. ANCKOORA.
01 January 2011
Section 32 of Income Tax says, it is mandatory to claim depreciation. Further the department will not bear the loss due to wrong method of accountancy by assessee. Where assessee covers u/s 44AA its his responsibility to maintain proper books of Accounts. My views will be: NO Depreciation on Actual Cost.
Suggestion: you can show it that asset being put to use in P.Y. itself and can claim Depreciation.
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