Ruling in M/s ICDS Ltd v Commis-sioner of Income Tax, Mysore & Anr, the Supreme Court held that tax depreciation on a finance lease transaction should be available to the lessor, as the lessor qualifies as the owner of the asset and is using the asset for the purpose of business.
The court was ruling on a claim for depreciation under section 32 of the Income Tax Act, 1961, by ICDS, a non-banking financial company that bought and leased vehicles. The vehicles leased were registered in the names of the customers. ICDS had also claimed depreciation at a higher rate on the ground that the vehicles were used in the business of running on hire.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
