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TMI Blog2012 (10) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... ut by the appellant? 2. Whether the Income Tax Appellate Tribunal is right in rejecting the claims of depreciation on boilers which were leased out in accordance with law?" 2. T.C.(A). No. 2349 of 2006 relates to assessment year 1996-97 and T.C.(A). No. 2350 of 2006 relates to assessment year 1995-96. The assessee herein is engaged in the business of financing, hire purchase and bill discounting business. In respect of its claim for depreciation, on the assets leased out to M/s. Khoday India Limited, the assessee submitted that the boilers were purchased from Khoday Breweries Limited, an associate concern of M/s.Khoday India Limited on 27.3.1995, and leased out to the Khoday India Limited. Thus, the assessee claimed depreciation in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he boiler was still lying and functioning in the factory of Khoday Breweries Limited and it was not installed in Khoday India Limited. Letter from Khoday Breweries Limited dated 27.3.1998 and Khoday India Limited confirmed that Khoday Breweries Limited had purchased the boiler on 16.11.89 for Rs.22,24,000/- and that the constructive delivery was given to Khoday India Limited and the boiler was used by Khoday Breweries Limited. The cheque payment by assessee was issued in the name of Khoday India Limited and not in the name of Khoday Breweries Limited. Thus, the Officer arrived at the conclusion that the transactions was only loan transactions which was subsequently given the colour as lease transactions. The sale price shown in invoices wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to Khoday India Limited by the appellant. In the circumstances, the Commissioner of Income Tax (Appeals) confirmed the assessment. Aggrieved by this, the assessee went on further appeal before the Tribunal, which, once again in paragraph 15 of the order confirmed the findings of the lower authorities. The Tribunal held that the entire transactions is sham one and going by the elaborate discussion by the Commissioner of Income Tax (Appeals) and the Officer, the Tribunal upheld the order of the lower authorities. Aggrieved by this, the assessee is before this Court. 4. A perusal of the grounds of appeal raised before this Court reveals that nowhere the assessee had questioned the findings of fact as regards the genuineness of the lease tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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