https://www.taxtmi.com/caselaws?id=204476 Depreciation on assets sold and leased back was upheld where sale deed, invoice and lease agreement showed transfer of title to the assessee and leaseback to the original owner. The court treated the contractual documents and surrounding circumstances as decisive of the parties' intention, and held that a mere tax advantage did not make the arrangement unreal. Depreciation could be denied only on proof that the transaction was sham, dubious or a colourable device; no such evidence was established. A letter suggesting the arrangement was entered into to raise finance did not bind the assessee. The transaction was therefore genuine, ownership for depreciation purposes remained with the assessee, and depreciation was allowable. en-us Mon, 18 Jul 2011 00:00:00 +0530 Tue, 23 Dec 2025 14:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204476 Depreciation on assets sold and leased back was upheld where sale deed, invoice and lease agreement showed transfer of title to the assessee and leaseback to the original owner. The court treated the contractual documents and surrounding circumstances as decisive of the parties' intention, and held that a mere tax advantage did not make the arrangement unreal. Depreciation could be denied only on proof that the transaction was sham, dubious or a colourable device; no such evidence was established. A letter suggesting the arrangement was entered into to raise finance did not bind the assessee. The transaction was therefore genuine, ownership for depreciation purposes remained with the assessee, and depreciation was allowable. Case-Laws Income Tax Mon, 18 Jul 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204476