9911796707
TMI Blog2011 (3) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... r in allowing claim of depreciation, decision in favour of the assessee and against the Revenue, Tribunal was right in law and on facts in allowing the claim of the assessee - Tax Appellant No. 153 of 2000 - - - Dated:- 4-3-2011 - Harsha Devani, H B Antani, JJ. K.M. Parikh for the Appellant S.N. Soparkar for the Respondent JUDGEMENT Harsha Devani: Revenue has preferred this appeal under section 260A of the Income Tax Act [the Act, for short, hereinafter] challenging the order dated 27.10.1999 made by the Income Tax Appellate Tribunal, Ahmedabad 'B' Bench, Ahmedabad [the Tribunal, for short, hereinafter] in I.T.A. No. 2417/Ahd/199B for Assessment Year 1994-95. While admitting the appeal, this Court had, vide o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost. GLFL gave the same machine on hire purchases to the respondent-assessee as per hire purchase agreement. Thereafter, the respondent-assessee Company gave the same machine on lease and buy-back basis to Lloyd Steel Industries Ltd. In this manner, the machine sold by Lloyd Steel Industries Ltd came to be leased back to itself by hire purchase agreement. The second machine, Solid State Device for Controlling Motor Speed - Rs.1,15,87,500-00 was purchased by GLFL directly from Kayam Udyog Limited in March, 1994. The said machine was given on hire purchase agreement to the respondent-assessee Company as per the hire purchase agreement. In turn, the respondent-assessee Company gave the machine on lease to Lloyd Steel Industries Ltd as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 27.10.1999 partly allowed the appeal. The Tribunal placing reliance on its own judgment in the case of Unimed Techolology Ltd [ITA No. 2456/A/98] held that so far as the second condition for grant of depreciation, viz. that the asset must be used for the purpose of business is concerned, it is amply established that the machines in question have been used during the business of leasing by the assessee Company and therefore, the essential condition of user as contained u/s 32 is fulfilled. The Tribunal ultimately held that the assessee is entitled to depreciation in respect of both the machines leased out to Lloyd Steel Industries Ltd. With regard to levy of interest under section 234A, 234B and 234C, the Tribunal upheld the view taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Raj) 415 in the case of CIT vs. Rajasthan State Electricity Board. The question before the Rajasthan High Court was in relation to disallowance of payment of lease rentals on the transaction of sale-cum-lease back agreement and Rajasthan High Court has found that the Tribunal had rightly appreciated the facts and correctly found the transaction to be genuine and such a finding could not be treated to be perverse. Admittedly, the transaction in question which the High Court of Rajasthan was called upon to deal with is the same transaction which has been found to be genuine by the Tribunal in the present case. The lease rental paid by Rajasthan State Electricity Board has been found by Rajasthan High Court to be allowable deduction as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (Appeals) confirmed the findings of the Assessing Officer. In Second Appeal the Tribunal, vide its order dated 16.04.1999, held that the transactions were genuine and the assessee was entitled to depreciation as claimed. It is not necessary to set out the detailed reasons recorded by the Tribunal as it is common ground between the parties that the issue now stands concluded by order dated 10.09.2008 rendered in Tax Appeal No.444 of 2008 in the case of The Commissioner of Income Tax-Ahmedabad-II vs. Gujarat Gas Co. Ltd., wherein identical issue was involved and the Tribunal's order has been upheld by the High Court. During course of hearing the learned counsel for the appellant-revenue submitted that the Assessing Officer having not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
