06 January 2011
Proviso to rule 5, with regard to claim of deprecation states "provided further that the understanding specified in clause (i) of sub-section (1) of section 32 of the Act may, instead of the depreciation specified in Appendix IA, at its option, be allowed deprecation under sub-rule (1) read with Appendix I, if such option is exercised before the due date for furnishing the return of income under sub-section (1) of section 139 of the Act".
Query : The assessee exercised the option by way of filing his return of income by claiming deprecation under sub rule (1) read with Appendix I. Is it necessary that the separate letter or communication need to filed before the assessing officer. In case the answer is Yes, then which relevant provision / circular states so. In case No, then do we have any case law which states that exercise the option by way of filing of return is enough.
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