Wdv
CA Abhirup Kar (CA) (92 Points)
07 January 2012CA Abhirup Kar (CA) (92 Points)
07 January 2012
Vineet Goyal
(Assistant Manager - Finance & Accounts)
(702 Points)
Replied 07 January 2012
yes you should
SRIKAR BABU
(AM)
(102 Points)
Replied 07 January 2012
Hai,
According to opinion given by ICAI expert advisory committee in Whittle Anderson Ltd. v CIT (79 ITR 613), if the asset is plant & machinery and, it is installed and is fit for use, then depreciation should be provided. Otherwise provision for depreciation is not necessary.
However, according to accepted accounting principles, depreciation also arises out of efflux of time, hence, on has to keep in mind the type of asset too.