https://www.taxtmi.com/caselaws?id=779414 ITAT MUMBAI-AT held that where depreciation on finance-lease assets is surrendered, principal recovery is a return of capital and not taxable income; taxing principal while disallowing depreciation would be inconsistent. The AO had accepted the surrender of depreciation, and the Tribunal found the corresponding exclusion of principal recovery must be allowed as an intrinsic corollary, not a forbidden fresh claim. The Revenue's reliance on Goetze was rejected. The CIT(A)'s restriction of addition to Rs.8,45,72,646/- was upheld and the Revenue's appeal was dismissed. en-us Wed, 24 Sep 2025 00:00:00 +0530 Mon, 06 Oct 2025 09:10:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779414 ITAT MUMBAI-AT held that where depreciation on finance-lease assets is surrendered, principal recovery is a return of capital and not taxable income; taxing principal while disallowing depreciation would be inconsistent. The AO had accepted the surrender of depreciation, and the Tribunal found the corresponding exclusion of principal recovery must be allowed as an intrinsic corollary, not a forbidden fresh claim. The Revenue's reliance on Goetze was rejected. The CIT(A)'s restriction of addition to Rs.8,45,72,646/- was upheld and the Revenue's appeal was dismissed. Case-Laws Income Tax Wed, 24 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779414