Depreciation

[janakiraman iyer]

when one purchase flat in Mumbai or in Gujarat , developer enters into two agreements, one for sale of undivided cost of land and other for construction etc but the effect is acquisition of flat by acquiring shares in cooperative society as land is never conveyed in name of any member but only to cooperative society and so when a corporate claim depreciation on this purchase , they are entitled for deprecation on both the values namely purchase of undivided portion of land and construction cost of flat. can one give any case law on this legal point

AI Summary

Can a company claim depreciation on both land and construction costs when acquiring shares in a cooperative society? A query was raised regarding the entitlement to claim depreciation for a corporate entity upon purchasing a flat in Mumbai or Gujarat. The purchase involves two agreements: one for the undivided cost of land and another for construction, resulting in acquiring shares in a cooperative society rather than direct land ownership. The question seeks clarification on whether depreciation can be claimed on both the undivided land portion and the construction cost. The inquiry also requests any relevant case law to support this legal point.