Question ID :
31654
applicability of section 35AD
Assessee is an individual who has incurred capital expenditure on construction of warehouse. This warehouse has been let out to Food Corporation of India for the purpose of Storage of Agricultural produce. Total construction cost is Rs.6 crores. Rent started coming in after a year. Depreciation was claimed for 2 years upto 2016-17 and IT returns has been filed for the 2 years. Is it possible to claim deduction us 35AD on the balance unamortized capital expenditure of Rs.3.7 crores during 2017-18? The profit and loss account has net expenses of Rs.30 lakhs. Assuming the same trend continues for FY 2017-18, and if Section 35AD is applied, can the balance unamortised capital expenditure of Rs.3 crores and odd, be carried forward to future years? This is in context of provision relating to storage of food grains in Section 35AD being scrapped from FY 2018-19 onwards.
posted by
CA. ANURADHA A V
on
May 30 2018 12:00AM