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TMI Blog2013 (4) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 31-1-2012 - MR. AKIL KURESHI AND MS SONIA GOKANI JJ. Appearance: MRS MAUNA M BHATT for Appellant(s): 1, ORAL ORDER (Per : HONOURABLE MS JUSTICE SONIA GOKANI) In this Tax Appeal, challenge is to the order of the Tribunal dated 30th July 2010 proposing following questions for our consideration: A. Whether on the facts and in the circumstances of the case and in law the Appellate Tribunal has erred in holding that the depreciation of Rs.1,33,34,400/0- was allowable on Plant and Machinery in sale and lease back transaction which was in the nature of merely a financing transaction ? B. Whether on the facts and in the circumstances of the case and in law the Appellate Tribunal has erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t during the assessment year under consideration, the assessee had entered into sale and lease back transaction with Rajasthan State Electricity Board in respect of Gas Booster Compressors Fuel Oil Handling System and had claimed depreciation on the above sum of Rs. 1,00,00,801/=. The Assessing Officer, after detailed discussion in the assessment order, had treated the said transaction in the nature of hire-purchase and not as a lease agreement; as stated by the assessee, and had accordingly, disallowed the depreciation claim of the assessee. The issue was carried in Appeal by the assessee. CIT [A], by Order dated 25th March 2008 ruled in favour of the assessee. Revenue carried the matter in appeal before the Tribunal. The Tribunal, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Rajasthan State Electricity Board has been found by Rajasthan High Court to be allowable deduction as the transaction is genuine. Correspondingly, in hands of the assessee company, the said lease rental has been taxed as business income and the same has not been disturbed by the Assessing Officer despite having initiated action u/s. 147 of the Act for treating the transaction as a non-genuine transaction. 8. In the aforesaid facts and circumstances of the case whether the transaction of leasing out electrical equipments to Rajasthan Electricity Board is genuine or not is based on appreciation of evidence on record as found by the Tribunal by referring to the various documents like invoice etc. In absence of any evidence to show anyt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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