M/S. Icds Limited vs The Deputy Commissioner Of Income-Tax on 3 August, 2021
6.1 We notice that it is an recurring issue and identical disallowance made
in the assessee's own case relating to AY 2010-11 in IT(TP)A
No.191/Bang/2015 dated 25.1.2017 has been deleted following the decision
rendered by Hon'ble Supreme Court in the case of ICDS Ltd vs. CIT
(2013)(350 ITR 527), wherein it was held that the lessor shall be entitled to
depreciation on assets leased out by him. Consequently, the lease rental
payments made by the lessee is allowable as expenditure in his hands. The
above said decision rendered in AY 2010-11 was followed in the assessee's
own case in AY 2009-10 in IT(TP)A No.262/Bang/2014 dated 25.10.2021.
In the instant case, the assessee herein is the lessee and hence the lease rental
payments are allowable as expenditure. Accordingly, following the above
said decisions, we direct the AO to delete this disallowance.