https://www.taxtmi.com/caselaws?id=236113 Depreciation under section 32 required real ownership and business use, so depreciation on electric meters leased back under a sale-and-lease arrangement was disallowed because the transaction was treated in substance as financing rather than a genuine transfer of assets. Depreciation on office and residential premises was confined to the superstructure and not the land component, with the valuation report forming the proper basis for recomputation. Interest under section 234B was held leviable as mandatory and compensatory. In contrast, the capital recovery element embedded in lease rentals was not taxable as income; only the revenue or finance element was taxable. en-us Wed, 07 Aug 2013 00:00:00 +0530 Wed, 14 Aug 2013 19:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=236113 Depreciation under section 32 required real ownership and business use, so depreciation on electric meters leased back under a sale-and-lease arrangement was disallowed because the transaction was treated in substance as financing rather than a genuine transfer of assets. Depreciation on office and residential premises was confined to the superstructure and not the land component, with the valuation report forming the proper basis for recomputation. Interest under section 234B was held leviable as mandatory and compensatory. In contrast, the capital recovery element embedded in lease rentals was not taxable as income; only the revenue or finance element was taxable. Case-Laws Income Tax Wed, 07 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=236113