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Clarity on 32ac, income tax

parth (owner) (53 Points)

06 July 2014

whether "computers installed in factory" to be considered for allowance under sec 32AC.....act reading says "office appliances including computers and software" ?

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11 Replies

(Guest)

Any office appliances including computer or computer software,

Specificaly exculded from New plant or Marchinery

therfore, Not eligible for Investment allowance u/s 32AC.

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parth (owner) (53 Points)
Replied 06 July 2014

Thank you..... But would it make any difference if "the computers are installed in office" or "the computers are installed in factory ? " Is any other view possible ?

(Guest)

From simple reading it can be concuded that computer or computer software Not eligible for Investment allowance u/s 32AC.

and still my opinion is same as previous.

parth (owner) (53 Points)
Replied 06 July 2014

Thank you...for the clarity

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 06 July 2014

Yes, not eligible for additional depreciation.

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Chirag Kalra (Article Assitant) (28 Points)
Replied 23 July 2014

According to me also Computer at Factory will also be not eligible for 32AC & Additional Depreciation.....but in guideline answers provided by gurukripa for CA Final DT paper may 2014 they have included the same...so postion is not cleared....

parth (owner) (53 Points)
Replied 23 July 2014

So what view would icai take ? Will they grant marks for the same ?

Chirag Kalra (Article Assitant) (28 Points)
Replied 23 July 2014

hopes so...wait for the suggested answers....

parth (owner) (53 Points)
Replied 23 July 2014

Thanks chirag....can u have a look on the wealthtax question of commercial properties let out on rent for 300 days....act specifically excludes "commercial establishment or complexes" so again what view is possible as shreegurukripa takes a different view

Chirag Kalra (Article Assitant) (28 Points)
Replied 23 July 2014

Commercial property is different from "Commercial establishment or Complexes".....so in that case answer given by gurukripa is coorect...even VG sir had taught us the same thing..