A partnership firm has 3 partners Doing constructions business,
THose 3 partners have floated a company (Different business) in which they are directors , the above mentioned partnership firm (not partners)have purchased Fixed assets for COMPANIES use but it is in the name of the firm and not the company , but the company has used it for is business through out the year
My question is .. Althought the partnership firm is the owner of the asset .. Since it is used by the company .. can the company claim depreciation ?
Note: No hire charges are charged by the firm for using the asset
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Ownership of an asset and depreciation
Replies (1)
Yes, company can claim depreciation on substance over form. Also in case "CIT v. Smt. A. Sivakami and Another" (2010) 322 ITR 64 it was decided that beneficial owner can claim dep u/s 32(1).
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