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2012 (5) TMI 729 - AT - Income TaxDisallowance of depreciation in respect of certain assets given under ‘sale and lease back basis’ by treating the lease transactions as finance transactions - Held that:- In the case of finance lease depreciation is not admissible to the lessor who is simply a nominal and symbolic owner of the asset, whereas the real owner who bears all the risks and rewards incidental to the ownership is the lessee. It has thus been held that it is only the lessee who is the actual and real owner of the asset in case of a finance lease, who is eventually entitled to depreciation and not the lessor. In view of the foregoing reasons, we are of the considered opinion that the ld. CIT(A) was justified in denying depreciation to the assessee.
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