avinash (CA final, article) (55 Points)
16 July 2011amount spent on construction of building on a leased land is not covered u/s 32of IT act for claiming depreciation. my faculty when asked told me that whole i.e 100% amount spent on constr. is to claimed as deduction in the year of completion.....
i am a bit confused about this..can anyone please eloborate on this issue??
suman
(Auditor )
(388 Points)
Replied 16 July 2011
Hey buddy according to as -19 if lease is in nature of finance lease than for sure expenditure incurred on construction can be classified as capital expenditure. I will send you more detailed explanation after some time .
avinash
(CA final, article)
(55 Points)
Replied 17 July 2011
thank u sir. please if u can reply me with reference to circular 2/2001
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 17 July 2011
HI, you should go by act and read the second proviso the section32 where it is clearly explained that amount spent on construction or incurring any expenditure on leased asset is 100% eligible for depreciation .
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