Considering that payment of Rs. 3,50,000/- is created by cash, it shall not be regarded as part of real cost of plant and machinery. The actual cost of plant and machinery shall be taken to become NIL and NIL shall be added to WDV of Block of property.
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Additionally, According to the provisions of part 35AD(7B) if any asset, in respect of which deduction has long been authorized previously, is set to employ with the reason besides the desired enterprise, then the expenditure allowed as reduced by depreciation calculated in terms of part 32, shall be extra back again towards the money with the assessee in the year in which the asset is so useful for reason other than specified company. There was no clarity regarding what would be the actual expense of these types of asset for the goal of section forty three.
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