our manufacturing process has been temporarily shut down due to natural calamity that is tsunami and hence the business operation was discontinued during the year. We have charged depreciation on fixed assets in the books of accounts;is this depreciation allowable under the Income Tax Act??????
3 Replies
kumar vivek
(CA)
(190 Points)
Replied 22 December 2008
An asset value has to be depreciated only after it has been put to use..so once we have depreciated the asset we can continue to do so...as definition of depreciation includes fall in value of asset owing to time also.
CA Tilak Raj Sharma
(Practising CA in Solan (H.P.))
(6374 Points)
Replied 22 December 2008
Yes, that will be allowed.
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