19 February 2011
If capital asset is purchased in cash paying more than Rs 20000/- whether depreciation is disallowed on such asset u/s 40a.......pls give case law, if any....
20 February 2011
Depreciation is allowed even when payment of capital asset is made in cash. Section 40A(3) is applicable for payments of revenue expenses , which are generally debited to Profit & Loss A/c.
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