17 August 2010
A new company is being incorporated for setting up a power project. The company apart from land and other civil work which are shown as CWIP also purchases certain assets like computer, furniture, etc. on which depreciation is provided under Companies Act and capitalsed as pre-operative expenditure pending allocation.
Should we claim depreciation under Income Tax Act also as the assets (computer, etc.) have been put to use or should we wait till the commencement of project?
CAclubindia
