Depreciation on fixed assets?

Depriciation is allowed but Section 40 A 3 will be appliacble for the cash payments in case of procurement of fixed assets also. so please check the same.

Yes depreciation will be allowed. No question of section 40A(3)

No . Depreciation will not be disallowed. Because Rule 6DD does not apply to purchase of Fixed Assets. Hence you can buy fixed assets in cash without any limit and claim depreciation.The payment for purchase of Fixed Assets is not 'any expenditure'of revenue nature. It is not debited in P & l a/c. Depreciation is allowed as per law if assets is owned and used for business or profession.Therefore,Section 40 A(3) sholuld not be applied. However, use of words 'no deduction shall be allowed in respect of such expenditure' will cause litigation because the AO will take viee that 'any expenditure' includes even capital expenditure and depreciation being a deduction i.r.o. such expenditure,Section 40A(3) is applicable.