https://www.taxtmi.com/caselaws?id=310941 ITAT Hyderabad held that lease rentals paid by the assessee constituted revenue expenditure and were allowable as deduction. The DRP had disallowed the claim, treating principal repayment as capital expenditure. However, the tribunal found that under the lease agreement, the lessor remained the owner of the vehicles and was entitled to depreciation, while the assessee paid rentals merely for asset usage. Since the assessee had not claimed depreciation on these assets and the lease rentals were payments for use rather than ownership, they qualified as revenue expenditure under the agreement terms. en-us Fri, 15 Nov 2019 00:00:00 +0530 Tue, 28 Nov 2023 06:09:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310941 ITAT Hyderabad held that lease rentals paid by the assessee constituted revenue expenditure and were allowable as deduction. The DRP had disallowed the claim, treating principal repayment as capital expenditure. However, the tribunal found that under the lease agreement, the lessor remained the owner of the vehicles and was entitled to depreciation, while the assessee paid rentals merely for asset usage. Since the assessee had not claimed depreciation on these assets and the lease rentals were payments for use rather than ownership, they qualified as revenue expenditure under the agreement terms. Case-Laws Income Tax Fri, 15 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310941