Hi!
X has purchased plant and machinery 3 years ago. The depreciated value of the same is zero now. Now, X wants to opt for Operating Lease with Y and sells the P&M to them and gets the lease back under a non-cancellable lease back for a period of 5 years. and X has an option to buy back at a nominal value or enter into another non-cancellable lease back for another period of 5 years.
In the above context, is it possible 'NOT TO TREAT THE SALE FROM 'X' TO 'Y' AS A 'TRANSFER'?
I am thankful if anybody could throw some light with any recent decided cases in this regard.
With best regards,
Ravindra Beleyur
CAclubindia
