02 January 2008
Sec 32 of IT act says that once the asset is either in active or passive use then it is compulsory to charge depreciation. In case the machinery (in use for production and subject to depreciation in the earlier years) was DISMANTLED this year then i understand that it is neither in active use nor passive use. Is it still compulsory to charge depreciation?
02 January 2008
it is compulsory to charge depreciation when once the asset is in active or passive use,since the asset is used once and then it is dismantled in the earlier years then also depreciation is to be charged and it is totally depends on the own disretion of assessee.
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