depreciation on leased assets and covered under finannce lease is allowed for depreciation under the companies act as per AS 19 , an perfect example of Substance over form. But Section 32 of the income tax act clearly says the tthe assessee should be the owner of the asset.
My question is that whether depreciation of financial lease assets can be availed as per Section 32 of the Income Tax Act
06 September 2010
No, Depreciation can be claimed inder section 32 od IT Act as it clearly specified that in case of the lease assets dep. can be climed by the lessor only not by lessee.
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