Updates on Operating Lease

Judicial update: (Important
decision u/s 32 of Act 1961)
In case of operating lease, it is the
lessor who is the owner of the
asset and therefore, the lessor is
entitled to depreciation.
However, in case of finance lease,
it is the lessee who is to be
considered as ownerand
therefore, the lessee is entitled to
depreciation.
The above view is taken by the
special bench of the tribunal in
the case of Indusind bank ltd
following SC decision in the case
of Asea Brown Boveri....135 ITD
165 (SB)