Depreciation allowability

[satbir singhwahi]

depreciation on assets leasesd , wheather depreciation allowed to lessor.

AI Summary

Can Lessees Claim Depreciation on Additions to Leased Property? Section 32 Clarifies Lessor's Rights. A query was raised about the allowability of depreciation on leased assets, specifically whether the lessor can claim depreciation. The response clarified that, according to Section 32, a lessee can claim depreciation on additions made to leased immovable property. However, typically, depreciation is allowed for the lessor in lease transactions. A 2001 CBDT circular supports this, stating that ICAI accounting standards do not conflict with depreciation provisions.