Lease to Konkan Railway is a Finance Lease; No Depreciation Allowed, Only Finance Interest Taxable as Income.

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....Depreciation on lease assets given to Konkan Railway Corporation Ltd - the transaction in question is finance lease and not operating lease. - no depreciation on asset will be allowed – Rental income from the lease will not be considered as income of the assessee for the income tax purpose and only the finance interest portion will be considered as income of the Assessee. - AT....