Rajagopalakrishnan R (PARTNER) (1422 Points)
28 February 2012Dear Members
in the Last 2 weeks we received at least 60-70 intimations u/s 143(1) of our clients in which consistently the depreciation claimed under the IT act has not been allowed. I.e from the P & L account, the PBT is taken as the business income, completely ignoring the depreciation schedules.
I checked the XML's and they seem to be OK
have any of our friends received such intimations?
Do share
Vignesh Killur
(Articled Assistant)
(1671 Points)
Replied 28 February 2012
Hi SIr,
For every difference in the Income as reported by you and income computed U/s 143(1) by the Dept, there will be a reason. Please go through the Common error guide released by the IT Department.
Please check the following:
1. In ITR 4, Part A-P&L A/c please see if the Item No. 43: Profit Before taxes TALLIES with Item No 1 of Schedule BP.
2. Please see that you have filled in Item No, 12(i) of Schedule BP i.e Depreciation allowable U/s 32(1)(ii)
3. Please see that Schedule DPM, DOA, & Schedule DEP are properly filled, the percentage of Depreciation is correctly filled and Column 6 of Schedule DEP tallies with Item No 12(i) of Schedule BP
We have never had a problem so far as regards Depreciation.
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