In the image its mentioned no dep. Allowed fr an assessee if he doesn't own asset but oly uses or hires.. But in ur notes its mentioned in case of hire purchase buyet can claim dep.
Renting something and using it and Buying something on installments (i.e. hire purchase) is different When you rent something you donâ??t become the owner of that thing. In case of hire purchase, though purchaser becomes the legal owner after paying last installment but all risks and rewards associated with the product are enjoyed by the customer (Substance over legal form, AS1/ICDS1). So, irrespective of the legal form, it is considered as an asset for the buyer. Depreciation for hire purchase assets: Ownership at once transferred (lease): Depreciation to lessee on HP price as per agreement Ownership transferred in the end (hire purchase): Depreciation to hire purchaser on cash price at the date of agreement