DAS Pvt. Ltd. fulfilling all the conditions as being specified in section 35AD of the Income Tax Act, 1961 has incurred capital expenditure of ₹30 lakh on purchase of land, ₹80 lakh (₹75 lakh by cheque and ₹5 lakh in cas

CS Executive · Tax Laws and Practice · PYQS · December 2018
DAS Pvt. Ltd. fulfilling all the conditions as being specified in section 35AD of the Income Tax Act, 1961 has incurred capital expenditure of ₹30 lakh on purchase of land, ₹80 lakh (₹75 lakh by cheque and ₹5 lakh in cash) on construction of building and ₹10 lakh on the plant and machinery during the previous year 2017-18 for setting up and operating a warehouse for the storage of sugar. The warehouse became operational on 1st March, 2018. The amount of deduction which the company can claim for such capital expenditure as per section 35AD in A.Y. 2018-19 shall be ..........
(A) ₹120 lakh
(B) ₹180 lakh
(C) ₹85 lakh
(D) ₹90 lakh

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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