cash payment exceeding 20000 in case of fixed asset purchase

Page no : 2

CA Prateek Garg (CA in Practice) (1447 Points)
Replied 06 September 2011

Refer this link

this question is discussed erlier also

/forum/re-depre-allowability-sec-40-a-3-55686.asp

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CA Sunil Kumar (chartered accountant) (22 Points)
Replied 17 October 2012

CASH PAYMENT EXCEEDING 20000 RUPEES FOR PURCHASE OF CAR IS ALLOWED BECAUSE IT IS NOT AN EXPENDITURE BUT DEPRECITION IS DISALLOWED BECAUSE IT GOES IN PROFIT AND LOSS ACCOUNT .BUT DEPRECITION IS NOT PAID IN CASH SO MOSTLY COMPANY ALLOWED IT .

KARANDEEP,CA,B.Com,CS FNL (JOB) (457 Points)
Replied 17 October 2012

Originally posted by : Kalpesh
	Just add on - as per Act once the assets enters the block its looses its identity and hence its impossible to exclude the depreciation peratining to specific assets.

AGREED WITH KAPLESH JI

Rinav Ashok Khakhar (Tax Lawyer) (2078 Points)
Replied 26 August 2013

if a mobile phone is purchased during the year for rs. 32772 and another for 26000 (both on different dates) and both the payments are made in cash.. will the depreciation be allowable to be claimed?? or will it be disallowed..??

dittyprince (accountant) (23 Points)
Replied 08 July 2014

we are the partnership firm would like to know if payment for purchase of a fixed assets exceeding 20000 is made in cash, would provisions of Sec 40A(3) be invoked on the depreciation claimed on the asset... pls throw light on the matter...if possible