https://www.taxtmi.com/caselaws?id=121018 Depreciation on windmills acquired under a hire-purchase arrangement was allowable in the initial year because the agreement was treated as involving hire and purchase components, with title passing under the transaction framework. The Board's circulars governed such arrangements by allowing depreciation on the initial value of the asset in the year of entry, while the hire element was treated as revenue expenditure. The later Board letter and instruction reiterated that approach, and the settled judicial position accepted depreciation in the hirer's hands. On those facts, the disallowance was unsustainable and the allowance of depreciation was upheld. en-us Fri, 17 Aug 2007 00:00:00 +0530 Thu, 26 Jul 2012 10:43:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121018 Depreciation on windmills acquired under a hire-purchase arrangement was allowable in the initial year because the agreement was treated as involving hire and purchase components, with title passing under the transaction framework. The Board's circulars governed such arrangements by allowing depreciation on the initial value of the asset in the year of entry, while the hire element was treated as revenue expenditure. The later Board letter and instruction reiterated that approach, and the settled judicial position accepted depreciation in the hirer's hands. On those facts, the disallowance was unsustainable and the allowance of depreciation was upheld. Case-Laws Income Tax Fri, 17 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121018