Home › CA Inter › taxation › Profits and Gains of Business or Profession › An assessee computed business income without cla…
An assessee computed business income without claiming depreciation, hoping to claim it in a later, more profitable year. Under section 32, depreciation for the year is:
ADeductible only in the year the assessee chooses to claim it
BDeductible only if the return of income claims it expressly
CMandatorily allowed, whether or not the assessee claims it
DLapsed forever, since it was not claimed in the return filed
Answer & Solution
Correct answer: C. Mandatorily allowed, whether or not the assessee claims it
1. Explanation 5 to section 32(1) states that depreciation shall be allowed whether or not the assessee has claimed it in computing total income.
2. The choice of deferring depreciation to a convenient year is therefore not available.
3. The written down value of the block stands reduced by the depreciation actually allowable each year, claimed or not.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 20_
Related questions
Which statement about the deductibility of Securities Transaction Tax (STT) and CommoditieA firm's net profit is Rs 17,00,000 before deducting partner salary of Rs 9,60,000, deprecA tyre manufacturer (opted out of the default regime) instals plant and machinery of Rs 12Unpaid interest of Rs 45,00,000 due to a State Financial Corporation and a bank was converA trader's turnover for P.Y. 2025-26 is Rs 8 crore. Cash receipts are 3 per cent of total An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was receivA car purchased on 10.8.2022 for Rs 5,25,000 for personal use was brought into professionaA company claimed Rs 50,00,000 under section 35AD for a warehouse building in A.Y. 2025-26