CA Pramod Jain (manager finance) (1577 Points)
23 July 2013Plz advice on following :
Company has purchased a ready to use flat @ pune last year 2011-12, but company has not claimed depreciation on assets neither as per co act or it act in last year 2011-12.
whether company should provide dep as per co act as per the concepts of AS - 6 and not provide dep as per sec 32 of it act (business use funda, since the assesse has not used this assets for business purpose.
Ca Priyanka mehta
(CHARTERED ACCOUNTANT)
(67 Points)
Replied 23 July 2013
company can provide depreciation in books as per companies act rate.but it will be disallowd u/sec 32 of IT act for calculating book profit of company u/sec 115JB MAT. because it is not used for business. dep will be allowed on assests as on the date it is put to use in business.so company cannot get dep benefit for this assest(flat).
CAclubindia
