Assessee is  a NBFC which was engaged in asset financing business and finances mainly against purchase of vehicles by way of operating lease and finance lease transactions.  Assessee claimed depreciation on assets which were in operating and finance lease. AO allowed the claim of depreciation. PCIT passed the revision order.  Held that the assessee is in the business of leasing and vehicles leased out were part of its business and principal component of finance lease rentals therefrom was offered for tax. Since both conditions in section 32 were complied with, accordingly the revision is not valid. Held that excess interest spread (EIS) receivable by assessee would be a contractual agreement and not an interest receipt as defined under section 2(28A),thus, ICDS-IV would have no applicability and tax treatment of such income in form of EIS would be governed by general principles under head business income as and when received by assessee which was to be accounted in accordance with RBI Circulars. Revision is not valid.  (AY. 2017-18)