Section 40A (3) is applicable to section 30-37, Hence depreciation shall not be allowed if it is cash purchase of fixed asset.
Payment in cash in excess of rs 20,000/-
Page no : 2
Anuj jain
(CA Final Student)
(163 Points)
Replied 23 September 2013
yes it is allowed because as u have incurred expenditure of capital nature and u r eligible to debit the depreciation in P&L a/c and the same will be allowed to u..but it is prefreble that FA should not be purchased from cash.
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