Dear Freinds i want to ask
If A partnership firm closed in nov 2013 while finalising its acconuts for f.y-2013-14 dep will be taken for 8 months
or for full year because when we prepare its return(ITR-5) threw income tax utility it calculating full year depreciation please guide with section reference
As on 31 March 2014, since no block of asset exists, the depreciation will not be allowed as per Income Tax Act, 1961 even if assets were used for 8 months in that year.
At the end of year no any Asset in the Block so Depn. will not arise.
CAclubindia
