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M/S. I.C.D.S. Ltd vs Commissioner Of Income Tax & Anr on 14 January, 2013

5. In this background, we have heard the rival stands, perused the relevant material and proceed to dispose of the issue in the following manner. As briefly noted by us earlier, the appellant is a public financial institution which is, inter-alia, engaged in the activity of providing finance including leasing also. In pursuance to such objects, the assessee had leased out assets to various entities and claimed depreciation on the value of such assets leased out. So far as the terms and conditions of the lease are concerned, both the lower authorities have converged that the same are on similar terms and conditions as was in the past years. In fact, there is a convergence between the two sides to the effect that the facts and circumstances of the dispute stand on an identical footing as was considered by the Tribunal in the earlier years, notably in Assessment Years 1994-95 to 1996-97 by way of a combined order dated 29.10.2014 (supra). We have perused the said decision and find that the Tribunal referred to various decisions, inter-alia, the judgment of the Hon'ble Supreme Court in the case of I.C.D.S. Ltd. Vs CIT [2013] 350 ITR 527 (SC), wherein Hon'ble Court held that even in cases of 'financial leases', the depreciation allowance contemplated under Section 32(1) of the Act is allowable to the lessor. It has not been shown by the Ld. CIT-DR that any of such 8 IDBI (ITA No. 3626/M/2001) AY 1997-98 precedents in assessee's own case has been altered by any higher authority. Therefore, so far as this aspect of the matter is concerned, we do not find any hesitation in directing the Assessing Officer to allow the claim of depreciation on lease of assets where it involves 'financial lease'.
Supreme Court of India Cites 23 - Cited by 128 - D K Jain - Full Document

Jcit, New Delhi vs M/S. American Express (India) Pvt. ... on 6 April, 2018

The co-ordinate bench followed the decision Dresdner Bank Ag (supra) and JCIT vs. American Express Bank Ltd. (24 taxmann.com 50 (Mum. Trib.). Considering the decision of co- ordinate bench of Tribunal, we direct the A.O. to allow the deduction on gross basis, ofcource after deducting the direct expenses attributable to earning such income. In the result, the assessee also succeeded on this ground.
Income Tax Appellate Tribunal - Delhi Cites 5 - Cited by 2 - Full Document
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