09 January 2019
As per sec 43(1) of Income Tax Act, if I purchase a asset of 12,000 the same shall not be added to the cost of capital asset (My interpretation: it will not form part of the block) and thus in effect depreciation will not be charged on it. My interpretation is depreciation on it can be still claimed under Companies Act, and thus it will affect my deferred Taxes. Is my interpretation correct or there is a flaw in it?
CAclubindia
