Can any one help me out??? Under what section Depreciation is disallowed???
8 Replies
sudhakar ca cwa
(service)
(1518 Points)
Replied 29 September 2010
if it is a personal asset.
not used in any previous year (subject to some case laws)
only sec 32 is the governing section for depreciation.
read it carefully u will get some better idea.
mainly dis allowances for depriciation based on case laws only.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 29 September 2010
Dear Divya,
Sec.32 deals with Depreciation. All the disallowances are covered under that section. Other than the above said section, there is no specific section for disallowance of deprecition in the I.T. act
CS Vijay Daxini
(At Practice)
(732 Points)
Replied 29 September 2010
read the sec.32 from singhania u r all doubt will be solved
Santosh
(Student ( Final Year - New ))
(348 Points)
Replied 29 September 2010
| Originally posted by : CA.G.Muguntha Narayanan | ||
 |
Dear Divya, Sec.32 deals with Depreciation. All the disallowances are covered under that section. Other than the above said section, there is no specific section for disallowance of deprecition in the I.T. act |
 |
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 29 September 2010
Depreciation is subject to section 32 under income tax act.
under this three condition specified for allowability of depreciation:
1) Assessee is owner of assets wholly or partly.
2) Assets must be used during the previous year.
3) Assets must be used for the purpose of business.
if these condition not satisfied depreciation is disallowed.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 29 September 2010
HI DIVYA,
Depreciation provision would governed specifically by sec. 32. If the assessee satisfies conditions prescribed under secion 32 for claiming depreciation, it would be entitled to claim depreciation under sec 32. Non fulfillment of any of the condition would disentitled assessee for claiming depreciation. In other words, depreciation would be disallowed if any of the conditions prescribed under sec 32 would not satisfied.
REGARDS,
MANOJ
Max Payne
(employed)
(2574 Points)
Replied 30 September 2010
Depreciation can be claimed if the conditions of section 32 are fulfilled.
Of course, there are numerous case laws in this matter as members have mentioned.
SECTION 38
Deals with disallowing depreciation or other expenses in relation to capital assets,
which are used for both personal and business purposes.
Eg: 1/4th of (depreciation, car maintenance, driver salary)
This disallowed depreciation is added back to the block to claim deferred depreciation benefit in future years.
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