Monday 2 December 2013

No depreciations to owner on assets given on lease if loan transaction was disguised as sale and lea

IT: Where assessee stated that it had purchased certain energy meters from Gujarat State Electricity Board and same were then immediately leased back to Board vide a lease agreement and accordingly it claimed depreciation on said meters, since sale invoice and lease agreement showed that transaction was a sham transaction, assessee was not entitled to get depreciation


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