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Issues involved: Interpretation of principles in Mcdowel's case, genuineness of transactions, entitlement to depreciation for a hire purchaser.
Interpretation of principles in Mcdowel's case: The High Court considered whether the Tribunal erred in holding that the principle laid down in Mcdowel's case would not apply. The Assessment Year in question was 1995-96, and the Assessing Officer disallowed the claim of depreciation at 100% by the assessee, citing that the transactions were not genuine. The Commissioner (Appeals) upheld this decision, but the Tribunal, in its order dated 16.04.1999, deemed the transactions to be genuine and allowed the depreciation claim. Genuineness of transactions: The Tribunal's decision was supported by a previous order dated 10.09.2008 in a similar case, where the Tribunal's ruling was upheld by the High Court. The High Court concluded that the transactions were indeed genuine, and the Tribunal did not err in allowing the depreciation claim. The Assessing Officer was directed to process the claim of depreciation in line with the law. Entitlement to depreciation for a hire purchaser: The High Court also addressed whether the assessee, being a hire purchaser, was entitled to depreciation. It was determined that the assessee was indeed entitled to depreciation, and all three questions raised were answered in favor of the assessee. Consequently, the appeal was dismissed with no costs imposed.
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