Dismissing the SLP the Court held that once Gujarat Narmada Valley Fertilizers was held to be the owner and entitled to depreciation, the Department thereafter could not be permitted to contend with respect to the same transaction, that the assessee was the owner and entitled to depreciation. Order of High Court allowing the lease rent as deduction is affirmed.
CIT v. Narmada Chematur Petrochemicals Ltd. (2023)454 ITR 584 / 292 Taxman 2 (SC) Editorial : CIT v. Narmada Chematur Petrochemicals Ltd (Guj)(HC)(ITA No. 1037 of 2013 dt. 28-1-2014)
S. 37(1) : Business expenditure-Lease of assets-Lease rent assessed as business income in the assessment of lessor-lease rent should be allowed as deduction-Revenue cannot contend that the assessee is the owner. [S. 32, Art. 132]