Depreciation and S. 43A

[Guest]

Dear sirIf in the second half of the previous year liability is increased on exchange fluctuations under section 43A then whether second proviso to section 32(1)(ii) shall apply or not.

[Ganeshan Kalyani]

If the amount involved is high then it is advisable to consult practising Chartered Accountant, may be from this forum or in your contact. However, if other experts want to attempt to answer the query I welcome. This will enrich my knowledge as well. Thanks.

AI Summary

Exchange fluctuation under section 43A raises whether the second proviso to section 32(1)(ii) applies; seek CA advice. The query asks whether an upward liability recognised in the second half of the previous year for exchange fluctuations affects application of the second proviso to the depreciation provision, and advises consulting a practising chartered accountant to assess facts and amounts before deciding the proviso's applicability.