Depreciation whether to be allowed on the purchase and installation of a fire extinguisher by a practicing CS in his office, even when the same is not put to use or used during the year of acquisition as stipulated under

CS Executive · Tax Laws and Practice · PYQS · December 2018
Depreciation whether to be allowed on the purchase and installation of a fire extinguisher by a practicing CS in his office, even when the same is not put to use or used during the year of acquisition as stipulated under section 32 of Income Tax, 1961:
(A) No, Failure to use for the profession or business
(B) Yes, Safety measures and kept stand by, treated as passive use and eligible for depreciation
(C) Yes, Allowable @ 10% of the cost
(D) Yes, Allowable @ 50% of the cost

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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