INCOME TAX ACT, 1961

Section 32(1)

Depreciation - Allowability - Leased out assets - Finance lease

Assessee claimed depreciation on fixed assets which had been lease out. AO disallowed claim of depreciation on the ground that it was a case of 'financial lease' of assets and not a case of an 'operating lease'.Held: Even in case of 'financial leases', depreciation allowance contemplated under section 32(1) was allowable to lessor, i.e., assessee.

Relied:ICDS Ltd. v. CIT (2013) 350 ITR 527 (SC) : 2013 TaxPub(DT) 414 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1997-98

INCOME TAX ACT, 1961

Section36(1)(iii)

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