Sec 32

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sumit (Querist)
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04 March 2009 As per sec 32,Depriciation will be claimed who is the owner of the asset and the asset should be use for business. Again if asset is acquired under hirepurchase agrement then the deduction would be avalaible to the lesse.Then it is not clashing with explanation to 4a of sec 43?

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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04 March 2009 Dear Sumit,
Explanation 4A to Section 43 provides the WDV for the assessee if he he is giving the asset on lease to person from he acquired. Here depreciation will be clamied by assessee on the WDV which was of for the person who has taken it on lease.

sumit

sumit (Querist)
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04 March 2009 why the lesse (Mr A) cannot claim depriciation on the asset acquired on hire purchase from the person (Mr B) who intially sold yhe asset to Mr B by Mr A?

In this case dep will be claim by Mr B as he is real ownwer which is aganist hire purchase rule to claim Dep

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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04 March 2009 You cant apply Hire purchase rule in Income tax dear. Its for purpose of Accounting as provided in AS-19. You can't mix AS-19 and 43(1)

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