Depreciation on Assets held under lease in the nature of Purchase

Issue: Whether the assessee is entitled to depreciation under Section 32 of the Income Tax Act even when the assessee was not the owner of the property in question and was in possession thereof as a lessee during the year under consideration? Brief Facts In the present case the assessee claimed depreciation for AY 1994-95 urging that it had paid a sum of Rs. 3.16 crores. The AO rejected the claim as is evident from the preceding discussion and a reading of his order would reveal that he confined his scrutiny to the lease agreement of 16.04.1993. The AO’s order is forthright with the sub...