Held, that Circular No. 2 of 2001, dated February 9, 2001 ([2001 247 ITR (St.) 53) clarified that the Accounting Standard creating a distinction between finance lease and operating lease would have no implications on the allowance of depreciation on assets under the provisions of the Act. There being no change either in the facts or in law in this regard, the position accepted by the Department had to be followed and the lease rent allowed on the principle of consistency. (AY. 2003-04,2006-07 to 2008-09)
Jindal Steel and Power Ltd. v. Add. CIT (2022) 97 ITR 516 (Delhi) (Trib)
S. 37(1) : Business expenditure-Aircraft Lease Rental-Lessor eligible to claim depreciation-Lessee eligible to claim deduction on rental payments of the aircrafts-Accounting standard created distinction between finance lease and operating lease-Not applicable-Allowed in earlier years-Principle of consistency followed.[S. 32, 145]