Dear Experts,
Whether depreciation disallowed during the previous year due to personal use can be included in opening WDV while computing current year's depreciation?
e.g. Opening WDV on 1.4.2012 was Rs. 100000. Depreciation was provided @ 10% i.e. Rs. 10000. But the asset was also used for personal purposes therefore Rs. 5000 was disallowed by assessee himself and depreciation claimed in income tax was Rs. 5000 in F.Y. 12-13.
Now in the F.Y. 2013-14 whether the assessee can claim depreciaiton on the disallowed amount of Rs. 5000? i.e. can assessee take opening WDV of Rs. 95000 and claim depreciation on Rs. 95000?
Please support your answer with suitable case law or give reference of income tax provision.
CAclubindia
