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Quarry land deprication

bhaskar (audit assistant) (26 Points)

27 September 2018

In Minor Mineral Industries Assessee purchase Land and then taken lease for Excavation of Land / Digging for Raw Material (STONES), After complete excavation of Landn value will be NIL or equalant, In this case Deprication is allow on Land Cost ? or How land cost book in P n L to reduce Profit ?

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4 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 27 September 2018

Land cost is NRV or cost whichever higher.

Depreciation is never charged on LAND

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Ashwin Kumar (1234 Points)
Replied 27 September 2018

depreciation does not fall under any block under the indian income tax act 1961. lands value does not depreciate over a period of time. so, there is no depreciation in the case of land.

bhaskar (audit assistant) (26 Points)
Replied 01 October 2018

Above my query can relate to Section 35E in The Income- Tax Act, 1995 35E. 1 Deduction for expenditure on prospecting, etc., for certain minerals 2 Any expenditure- (i) on the acquisition of the site of the source of any mineral or group of associated minerals referred to in sub- section (2) or of any rights in or over such site; (4) The deduction to be allowed under sub- section (1) for any relevant previous year shall be- (a) an amount equal to one- tenth of the expenditure specified in subsection (2) (such one- tenth being hereafter in this sub- section referred to as the instalment); Please advice on above point Thanks & Regards