Depreciation allowability, Income Tax

[satbir singh wahi]

depreciation on assets leasesd , wheather depreciation allowed to lessor.

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[Rama Krishana]

An explanation to Section 32 regarding lease of immovable property says that addition to the lease property by the leasee would entitle the leasee to claim depreciation on addition. But, in general case, in case of lease transactions, the depreciation is allowed in the hands of leasor. One circular of CBDT issued in 2001 also says that the accounting standard issued by the ICAI does not come in the way of provisions of depreciation.