Friday, March 15, 2013

SECTION 32: DEPRECIATION

The Mumbai ITAT bench has held that depreciation is not an outgoing expenditure but a statutory deduction. Therefore, the provisions of section 40(a)(i) are not attracted on such deduction.

The Supreme Court has held that where assessee, engaged in business of hire purchase & leasing, having purchased vehicles from manufacturers, leased out those vehicles to customers, it was entitled to claim deprecia-tion in respect of vehicles so leased out.

The Delhi ITAT bench has held that where Assessing Officer had allowed depreciation on assets in question in previous assessment year, in absence of any change in facts, depreciation on said assets could not be disallowed in subsequent years.

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