Depreciation allowable on fixed assets purchased by assessee in cash

Daawat Foods Ltd. Vs ACIT (ITAT Delhi) As far as the disallowance of the depreciation of Rs.93,406/-on the capital expenditure is concerned, we find that AO has disallowed the depreciation on the capital expenditure of Rs.5,35,468/- which has been stated to have been incurred by the assessee in cash. We find that the Co-ordinate Bench of Tribunal in the case of Kansi Ram Madan Lal vs. ITO (supra), the Co-ordinate Bench of Tribunal has held that the provision of Section 40A(3) are not attracted in the case of capital expenditure.In view of these facts, we hold that AO was not justified in disal...