https://www.taxtmi.com/caselaws?id=5659 SC held that an assessee operating a leasing/finance business is entitled to investment allowance under Section 32A where machinery is wholly used in that business. A hire agreement lacking an element of eventual sale is a true hire; the owner may claim depreciation and the hire charges are business income. Hire purchase agreements with an option to purchase are treated differently, but absent any sale element the agreement should not be recharacterized to deny Section 32A relief. Appeals dismissed with costs. en-us Fri, 20 Mar 1998 00:00:00 +0530 Mon, 27 Apr 2026 17:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5659 SC held that an assessee operating a leasing/finance business is entitled to investment allowance under Section 32A where machinery is wholly used in that business. A hire agreement lacking an element of eventual sale is a true hire; the owner may claim depreciation and the hire charges are business income. Hire purchase agreements with an option to purchase are treated differently, but absent any sale element the agreement should not be recharacterized to deny Section 32A relief. Appeals dismissed with costs. Case-Laws Income Tax Fri, 20 Mar 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5659