16 July 2024
Company had capitalised some Assets in past years & claimed depreciation on the same. However, during physical verification of fixed asset in subsequent year, it was found that the assets have never entered to premises of the company. The purchase manager has fraudulently produced invoices, took the delivery of the assets & absconded. The company is now writing off those assets in the books. What will be the treatment of this fraud in the depreciation as per Income Tax Act? Whether the company can claim depreciation as the cost of those assets is a part of the WDV.
17 July 2024
WDV of the asset is already reduced by depreciation claimed earlier, how can you reduce it again? Whether any depreciation was not claimed earlier?
CAclubindia
