Friends,
In case of a lease who is entitled to depreciation.
As per VKS DT ready reckoner, “AS on leases by ICAI requires capitalisation of the asset by lessees in financial lease transaction. By itself, the AS will have no implication on allowance of depreciation on assets under IT Act – Circular 2/2001 dt Feb 9, 2001. However, it cannot be concluded that after circular 2/2001 lessee cannot claim depreciation in a financial lease. If lessee (in a financial lease) can exercise the rights of owner not behalf of lessor but in his own right depreciation is available to the lessee.”
Is there any clarity on the matter
Regards,
CAclubindia
