Mere irregularity in payments cannot be the basis for rejection of Depreciation on purchased & leased back asset

HIGH COURT OF MADRAS Deputy Commissioner of Income-tax Versus First Leasing Co. of India Ltd. TAX CASE (APPEAL) NO. 1146 OF 2006 TCMP NO. 1600 OF 2006 SEPTEMBER 13, 2012 JUDGMENT Mrs. Chitra Venkataraman, J. – The Revenue is on appeal as against the order of the Tribunal. The assessment year under consideration before this court is 1996-97. Following are the questions of law raised for consideration in the above Tax Case (Appeal):- “1. Whether the Tribunal was right in disallowing depreciation on sale and lease back contracts and lease contracts with regard to five...