A company (Pvt. )which has no production during the F.Y. 2015-16.
Can such company claim depreciation as an expense?
Hello Anubhaw,
As per section 32 of Income Tax Act, 1961, a assessee is entitled to claim depreciation on fixed assets only if the following conditions are satisfied:
1. Assessee must be owner of the asset – registered owner need not be necessary.
2. The asset must be used for the purposes of business or profession.
3. The asset must be used during the previous year.
Hence if any of the following conditions is not satisfied Income tax shall not allow depreciation.
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