https://www.taxtmi.com/caselaws?id=337164 Depreciation was allowable to a lessor on leased vehicles where the assessee retained ownership in the tax sense and the leasing activity constituted business use; physical use by the lessee did not defeat the claim, so the assessee succeeded on Section 32(1). Interest on borrowed funds was not disallowable under Section 36(1)(iii) because the Tribunal found no established diversion for non-business purposes and the advances were treated as lacking the revenue's required nexus, so the assessee also succeeded on this issue. The Revenue's challenge failed on both substantial questions, and the Tribunal's order was left undisturbed. en-us Wed, 23 Nov 2016 00:00:00 +0530 Wed, 04 Jan 2017 08:56:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337164 Depreciation was allowable to a lessor on leased vehicles where the assessee retained ownership in the tax sense and the leasing activity constituted business use; physical use by the lessee did not defeat the claim, so the assessee succeeded on Section 32(1). Interest on borrowed funds was not disallowable under Section 36(1)(iii) because the Tribunal found no established diversion for non-business purposes and the advances were treated as lacking the revenue's required nexus, so the assessee also succeeded on this issue. The Revenue's challenge failed on both substantial questions, and the Tribunal's order was left undisturbed. Case-Laws Income Tax Wed, 23 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337164