Rekha Sharma (Company Secretary) (167 Points)
08 June 2009Dear
Friends
Pls guide me with help of decided case laws whether my company will be entitle to claim dep on building for the period in which no busines activity was carried out ,pls note that the asset was purchsed for the use of buiness but due to some reasons business could not be done. ITO is rejecting our claim saying that if there is no buiness no dep will be allowed accordingly no carry forward of unabsorbed dep and set off u/s 72 will be allowed .
Reg
Rekha
CA Jimmit D Mehta
(Employed)
(494 Points)
Replied 08 June 2009
ANY ONE IF KNOWS ABT THE SAME PLS TELL ME.......
Radheyshyam Falod
(CA)
(416 Points)
Replied 08 June 2009
The action of ITO is probably correct as there has been no business and correspondingly no depreciation will be allowed
CA Mohit Agarwal
(Chartered Accountant)
(1025 Points)
Replied 09 June 2009
hi rekha
if u will refer Depreciation section 32 it says that asset is used for purpose than depreciation will claim.
If depreciation is not charge in a year than how it will carry forward
Therefore as per view ITO is correct.
CAclubindia
