Query on Amendment in Section 43(1)
neetu (Student) (84 Points)
27 August 2018Now as per amendment in Section 43(1) vide Finance Act, 2017, only RS. 1,00,000/- shall be treated as part of cost of the asset & Rs. 50,000/- shall be ignored for the same.
I have Query regarding treatment of the same in books of accounts of the assessee.
As per the amendment, depreciation shall be eligible on amount of RS. 1,00,000 i.e 15,000/-, but how to treat RS. 50,000/- paid in cash in the accounts? Whether the same shall be disallowed???
If yes, then disallowance under which section??
As capital expenditure debited to profit & loss account
OR
Under section 40A(3) which talks of any expenditure..?
Kindly resolve my Confusion....