Finance Lease Principal is Capital Recovery – Not Taxable Income: ITAT Mumbai

DCIT Vs Capsave Finance Pvt. Ltd. (ITAT Mumbai) Depreciation Surrender & Principal Exclusion Intrinsically Linked- Only Interest Taxable in Finance Lease, Principal is Capital – Goetze case limits AO’s jurisdiction but not appellate powers Capsave Finance Pvt Ltd, a NBFC engaged in leasing & asset financing, had filed return for AY 2018-19 offering entire finance lease rental income to tax & claiming depreciation on both operating & finance lease assets. During assessment, it revised computation, surrendering depreciation on finance lease assets (₹15.27 crore) & offe...