12 August 2010
Ok So Depreciation will be calculated on the sale price paid for vehicles by the purchaser ? whethr this scenario will changed if this is transaction between related parties ?
Where, before the date of acquisition by the assessee, the assets were at any time used by any other person for the purposes of his business or profession and the 13[Assessing] Officer is satisfied that the main purpose of the transfer of such assets, directly or indirectly to the assessee, was the reduction of a liability to income-tax (by claiming depreciation with reference to an enhanced cost), the actual cost to the assessee shall be such an amount as the 13[Assessing] Officer may, with the previous approval of the 14[Joint Commissioner], determine having regard to all the circumstances of the case.
So the WDV of the previous owner will be considered as ur purchase price and depreciation allowable on that amount in case it is purchase between related parties..
CAclubindia
