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claiming depreciation

jigna jain (11 Points)

05 July 2019

Hi,
Whether depreciation can be claimed on assets purchased but business operations are not started yet?
Kindly reply

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4 Replies

Nivedita (student) (275 Points)
Replied 05 July 2019

Unless the asset is put to use, no depreciation can be claimed over it.

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jigna jain (11 Points)
Replied 05 July 2019

what if asset is ready to use but business operations r not started

Krishna Chaudhary (Accountant) (4531 Points)
Replied 06 July 2019

In this case also you cannot claim depreciation on the asset.
It is clearly mentioned in the act that depreciation will be charged only when the asset is "put to use" not when the asset is ready to put to use. ( As per the case law Dinesh Kumar gulab Chandra Agrawal, Bombay High Court)

jigna jain (11 Points)
Replied 08 July 2019

But u/s 32 put to use is being defined as active use ND passive use both...so do we have to consider that ND claim depreciation r nt...m confused between that