Tag Archives: Depreciation

Computerized machines are not Computers, 60 % Depreciation not allowed

By | October 13, 2016

Held Increasingly organizations are moving towards computerized integrated manufacturing, where more and more computers, robots, and microprocessors are used in conjunction with the machines. But the machines cannot be called as computers even though computer is an integral and dedicated part of the whole machine. That computer in the machine cannot be used for any… Read More »

No Depreciation on Leasehold rights in land , it not intangible Asset : ITAT

By | July 24, 2016

Held we hold that by virtue of lease only an interest in land is created which does not qualify for allowance e of depreciation. IN THE ITAT BANGALORE BENCH ‘C’ Cyber Park Development & Construction Ltd. v. Deputy Commissioner of Income-tax, Circle 11(2), Bangalore SUNIL KUMAR YADAV, JUDICIAL MEMBER AND INTURI RAMA RAO, ACCOUNTANT MEMBER… Read More »

Useful Lives to Compute Depreciation under Companies Act 2013

By | June 14, 2016

Companies Act, 2013 SCHEDULE II [ Enforced with effect from 1-4-2014.] (See section 123 ) USEFUL LIVES TO COMPUTE DEPRECIATION PART ‘A’ 1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted… Read More »

Depreciation on revalued assets allowed to successor if same was allowed to predecessor

By | January 27, 2016

IN THE ITAT MUMBAI BENCH ‘E’ Deputy Commissioner of Income-tax-7 (2), Mumbai v. Suyash Laboratories Ltd. N.K. BILLAIYA, ACCOUNTANT MEMBER AND SANJAY GARG, JUDICIAL MEMBER IT APPEAL NOS. 4003 & 4004 (MUM.) OF 2012 [ASSESSMENT YEARS 2005-06 & 2006-07] OCTOBER  14, 2015 Premanand J. for the Appellant. Vijay Mehta for the Respondent. ORDER N.K. Billaiya,… Read More »

Depreciation is allowed even before the date of Inauguration if the Asset is ready to use : ITAT

By | November 27, 2015

Facts of the Case The assessee-company was engaged in the business of publishing of news papers. As per the Director’s report the company has commenced its business on 27.10.2007. The assessee has claimed depreciation for an amount of Rs.3,45,43,794 which includes depreciation at the rate of 15% amounting to Rs.76,87,348 on opening WDV of plant and… Read More »

ICAI issues Draft Guidance Note on Depreciation under the Companies Act, 2013

By | November 11, 2015

Institute of Chartered Accountants of India (ICAI) has recently withdrawn 5 Guidance Notes, including Guidance Note on Accounting for Depreciation in Companies as per the Companies Act, 1956. Under the Companies Act, 1956, Schedule XIV was dealing with provisions of depreciation. Now, the said Schedule XIV of Companies Act, 1956 has been replaced by Schedule… Read More »

Intellectual property rights come within the definition of ‘plant’ : Supreme Court

By | November 1, 2015

would intellectual property rights such as trademarks, copyrights and know-how come within the definition of ‘plant’ in the ‘sense which people conversant with the subject matter with which the statute is dealing, would attribute to it’? The Supreme Court opines, this must be answered in the affirmative for the reason that there can be no… Read More »