Held that the assessee should be the owner of the asset and the asset must be used for the purposes of business or profession. By merely entering into an agreement or understanding of user of the asset, a licence may be created in favour of the user, but that did not vest the user with the interest of any nature akin to owner for the purpose of section 32(1) of the Act. No depreciation beyond the law was allowable on the basis of a mutual understanding between the owner and the user. (AY. 2016-17)
Radisson Hospitality Marketing (India) Pvt. Ltd. v. Asst. CIT (2023)101 ITR 15 (SN)(Delhi) (Trib)
S. 32 : Depreciation-Condition Precedent-Ownership of asset-Asset purchased by sister concern-Mere agreement for use of asset does not vest assessee with any right, title and interest-Depreciation not sustainable.