Bombay HC allowed Depreciation on Leased Assets as Business Use Requirement Satisfied

CIT Vs Tata Motors Ltd. (Bombay High Court) The present batch of appeals was filed by the Revenue before the Bombay High Court challenging a common order dated 12 June 2017 passed by the Income Tax Appellate Tribunal (ITAT), Mumbai, concerning assessment years 1994–95 to 1997–98. The principal issues raised were: (i) whether depreciation under Section 32 of the Income-tax Act, 1961 could be allowed on leased assets, and (ii) whether interest under Section 220(2) could be charged beyond the original assessment order. The Assessing Officer had disallowed depreciation on leased assets on the ...