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| The Tax Publishers2020 TaxPub(DT) 2509 (Mum-Trib) INCOME TAX ACT, 1961
Section 32(1)
Even in cases of 'financial leases', depreciation allowance contemplated under section 32(1) is allowable to the lessor.
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Depreciation - Allowability - Asset given on finance lease - Case of finance lease
Assessee, public financial institution, was, inter alia, engaged in the activity of providing finance, including leasing also. In pursuance to such objects, assessee leased out assets to various entities and claimed depreciation on value of such asets leased out. AO disallowed assessee's claim on the ground that no depreciation could be allowed on assets given on finance lease.Held: Even in cases of 'financial leases', depreciation allowance contemplated under section 32(1) is allowable to the lessor. AO was directed accordingly.
Followed:ICDS Ltd. v. CIT (2013) 350 ITR 527 (SC) : 2013 TaxPub(DT) 414 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 36(1)(iii)
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