Assessee entitled to claim depreciation on leased assets despite ...

Lessee can claim depreciation on leased assets despite lack of ownership; Mere academic ownership irrelevant.

Case Laws Income Tax

August 22, 2024

Assessee entitled to claim depreciation on leased assets despite revenue's contention that transactions were mere financial transactions lacking ownership and usage for business purpose. Supreme Court's decision in I.C.D.S. case applicable, rejecting revenue's argument based on lease agreement clauses. Mere academic ownership shown to claim depreciation cannot disentitle depreciation u/s 32. Regarding interest u/s 220(2), ITAT rightly held it chargeable only up to original assessment order u/s 143(3) or 144, not up to order u/s 143(3) read with Section 254. Depreciation on leased assets allowed, consequently no further interest payable after assessment order.

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Assessee entitled to claim depreciation on leased assets despite ...

Lessee can claim depreciation on leased assets despite lack of ownership; Mere academic ownership irrelevant.

Case Laws Income Tax

August 22, 2024

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