https://www.taxtmi.com/caselaws?id=305775 Depreciation on finance-leased assets was allowable to the lessor because ownership remained with the assessee under the lease agreement, and tax depreciation had to be determined under the Income-tax Act rather than by accounting treatment under AS-19. The lessee's possession of the assets did not divest the assessee of ownership, and the fact that lease rentals were offered as business income while the lessee did not claim depreciation supported the claim. ITAT Mumbai held that AS-19 governed financial presentation only and did not control depreciation eligibility under tax law, so the disallowance was rightly deleted. en-us Thu, 17 Feb 2022 00:00:00 +0530 Fri, 23 Dec 2022 09:22:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=305775 Depreciation on finance-leased assets was allowable to the lessor because ownership remained with the assessee under the lease agreement, and tax depreciation had to be determined under the Income-tax Act rather than by accounting treatment under AS-19. The lessee's possession of the assets did not divest the assessee of ownership, and the fact that lease rentals were offered as business income while the lessee did not claim depreciation supported the claim. ITAT Mumbai held that AS-19 governed financial presentation only and did not control depreciation eligibility under tax law, so the disallowance was rightly deleted. Case-Laws Income Tax Thu, 17 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=305775