2019 (1) TMI 1968 - HC - Income Tax

Depreciation @ 40% on vehicles given on lease under hire purchase agreement - HELD THAT - Question already been answered against the Revenue by a Bench of this Court 2012 (9) TMI 1222 - TELANGANA HIGH COURT Therefore, following the same, the first question of law is answered against the appellant. Interest u/s.244A (2) - there was a delay in furnishing the TDS Certificates by the assessee - HELD THAT - Tribunal has recorded a finding on fact to the effect that the delay in furnishing the TDS Certificates was not attributable to the assessee. In fact, the assessee claimed credit to the extent of ₹ 1,10,70,255/-.But, the Assessing Officer gave credit only to the extent of ₹ 1,08,39,129/-. The certificates for the value of ₹ 2,31,126/- were found to be defective. But, the Tribunal recorded a factual finding that the assessee had no control in respect of the issue of TDS Certificate. We do not think that the second question of law arises for consideration in this case.

Summary

Issues involved:
1. Entitlement of depreciation on vehicles given on lease under hire purchase agreement.
2. Allowance of interest under section 244A (2) despite a delay in furnishing TDS certificates.

Analysis:
1. The first issue pertains to the entitlement of depreciation on vehicles given on lease under a hire purchase agreement. The High Court referred to a previous judgment where a similar question was answered against the Revenue. The Court upheld the previous decision and answered the first question of law against the appellant, stating that the assessee is entitled to depreciation at the rate of 40% on the vehicles provided under the lease agreement.

2. The second issue involves the allowance of interest under section 244A (2) despite a delay in furnishing TDS certificates. The Tribunal had found that the delay in providing the TDS certificates was not the fault of the assessee. The assessee had claimed credit for a specific amount, but the Assessing Officer only allowed credit for a lesser amount, citing defective certificates. The Tribunal, after considering the facts, concluded that the assessee had no control over the issuance of the TDS certificates. Therefore, the High Court determined that the second question of law did not require consideration in this case. Consequently, the appeal was dismissed, with no order as to costs, and any pending miscellaneous applications were also dismissed.