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2016 (4) TMI 913 - ITAT MUMBAIDepreciation on boiler - boiler purchased from and leased back to Andhra Pradesh State Electricity Board (APSEB) - Held that:- The impugned sale and lease back transactions is a genuine transaction. The transaction has been entered into between two unrelated parties by way of a written agreement and one of them is statutory corporation; the payment was made by banking channels; sales tax and other applicable taxes were paid and the transactions of sale has been accepted as valid by the concerned sales tax authorities. Though in the initial year assessee has claimed depreciation which reduced tax liability but at the same time amount of all these rentals have been included in the taxable income by the assessee in subsequent year during the lease period and thus, over all, there was no loss of revenue to the income tax department. Further the sale and lease back transactions have been recognized by the legislature by insertion of Explanation 4A to Section 43(1). Under these circumstances, there arises no question of evasion of tax and in any case if it is a genuine business transactions, the same should not be categorized as a colorable device merely because its results in reduction of tax liability. Further, it has been established that ownership of the impugned asset was with the assessee and the same was used for the purpose of business of leasing carried on by the assessee; under these circumstances the assessee was entitled for the benefit of depreciation. Therefore, AO is directed to grant the benefit of depreciation. - Decided in favour of assessee Disallowance of deduction u/s 80HH and 80IA on the amount of interest received from customers on delayed payments - Held that:- It is noted by us that this issue has already been decided by the Tribunal in earlier years i.e. Assessment Year 1992-93, 1993-94 and 1995-96. It is further noted by us that Ld. CIT(A) while deciding this issue has followed his own orders of the earlier years. In view of these facts, we find that orders of the Tribunal of earlier orders should be followed for deciding this issue, thus we direct the AO to grant benefit of deduction u/s 80HH & 80IA on the amount of interest received from customers/dealers.- Decided in favour of assessee
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