Case Law Details
Advocate Akhilesh Kumar Sah
Deduction of lease rentals paid towards cars taken on finance lease allowed while computing income: Phillips India appeal
Recently in, Phillips India Ltd. formerly Philips Electronics India Ltd. vs. ACIT [I.T.A No. 612/Kol/2017, A.Y. : 2012-13, decided on 07.02.2018], apart from other issues/grounds, the assessee claimed lease rental paid for motor car taken on finance lease from Citi Corp amounting to Rs. 6,86,60,107. The same was treated as capital expenditure by the AO based on the reliance placed in assessee’s own case for the A.Y. 2003-04 which got confirmed by ITAT, Kolkata. The DRP observed as under:-
The lease rentals paid by the assessee for the year 2003-04 were disallowed and the action was upheld by the ITAT.
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