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2013 (8) TMI 13 - RAJASTHAN HIGH COURTDisallowance of depreciation - Vehicles registered in the names of the purchasers and financed by the assessee under a hire purchase agreement - CIT disallowed depreciation - Tribunal allowed depreciation - Held that:- Section 32 requires that the assessee must use the asset for the "purposes of business". It does not mandate usage of the asset by the assessee itself. As long as the asset is utilised for the purpose of business of the assessee, the requirement of Section 32 will stand satisfied, notwithstanding non-usage of the asset itself by the assessee - As the owner, it used the assets in the course of its business, satisfying both requirements of Section 32 of the Act and hence, is entitled to claim depreciation in respect of additions made to the trucks, which were leased out - Following decisions of CIT v. Bansal Credits Ltd.[2002 (11) TMI 76 - DELHI High Court], CIT v. M.G.F. (India) Ltd.[2004 (1) TMI 10 - DELHI High Court] and CIT v. Annamalai Finance Ltd.[2004 (10) TMI 51 - MADRAS High Court] - Decided against Revenue.
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