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TMI Blog2019 (11) TMI 1806X X X X Extracts X X X X X X X X Extracts X X X X ..... es, filed its return of income for the A.Y 2013-14 on 29.11.2013 admitting a loss of Rs. 2,69,10,242/-. During the assessment proceedings u/s 143(3) r.w.s. 92CA(3) of the Act, the AO observed that the assessee has claimed an amount of Rs. 31,00,777/- towards "lease rental" u/s 37 in the computation of income. Observing that the assessee has not given any reason for claiming the same in the computation rather than in the P&L A/c, the AO disallowed the same and brought it to tax. Against the draft assessment order, the assessee filed its objections before the DRP. The DRP noted that out of the claim of deduction of Rs. 31,00,777/-, an amount of Rs. 28,64,684/- represented repayment of loans and the balance amount of Rs.&nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders of the authorities below. 4. The learned Counsel for the assessee relied upon the decision of the Hon'ble Supreme Court in the case of ICDS Ltd vs. CIT (2013) 29 Taxmann.com 129 (S.C) wherein the Hon'ble Supreme Court was considering the allowability of depreciation of leased vehicles in the hands of the assessee therein who was engaged in the business of hire purchase of vehicles and leasing of such vehicles and real estate etc. The Hon'ble Supreme Court held that the assessee therein was recorded as the exclusive owner of the vehicles at all points of time and in case of default committed by the lessee therein, the assessee lessor was empowered to re-possess vehicles as the owner of the vehicles. Thus, it was held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l moneys due under the agreement including the future payments payable, lessee shall make good the loss by paying the difference between the total of the receivable by the lessor and the sale price. Further, it is seen from the agreement that assessee is required to select the asset and pay the insurance for the asset and has to pay the lease rentals and other charges in accordance with the schedules. In case of failure by the assessee to pay the rentals, the said asset can be taken over by the lessor. It is also stipulated that the vehicles shall be registered in the name of the lessor. In the case of Rajshree Roadway vs. Union of India (2003) 29 Taxmann.com 663 (Raj.), the Hon'ble Rajasthan High Court has considered similar case where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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