Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2011 Sir,
What was the correct case law in which depreciation specifically allowed compulsory/mandatory?
Please specify the name of case law?
Help me.......

anurag

anurag (Expert)
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12 December 2011 As per explanation 5 to section 32(1)(ii) depreciation claim is not optional it is mandatory.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 Please mention the name of correct case law...

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CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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13 December 2011 if section in the IT act cleary states depreciation is mandatory to claim...then waht is use of case law...because Interpretation of sec 32(1)(ii) not ambigious...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 December 2011 Until 31st March 2001, a taxpayer could choose whether or not to claim depreciation. From 1st April 2001 onwards, however, the claim of depreciation is no longer optional and the amount of depreciation will be compulsorily treated as deduction, irrespective of whether or not the claim has been made.

For the position up to 31/03/2001 the following case law, among others, may be referred to.
CIT Vs. Kerala Electric Lamp Works Ltd [2003] 129 Taxman 549 (KER.)