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TMI Blog2013 (7) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ot have been countenanced and have rightly been reversed by the Appellate Authority - No interference in the findings on the mixed question of law and facts as rendered by the Appellate Authority and the Tribunal is called for - Following decision of CIT Vs. Shaan Finance (P.) Ltd. [1998 (3) TMI 8 - SUPREME Court] - Decided in favour of Assessee. - D.B. Income Tax Appeal No.138/2010 - - - Dated:- 16-5-2013 - Narendra Kumar Jain And Arun Bhansali,JJ. For the Petitioner : Mr. K. K. Bissa For the Respondent : Mr. Sanjeev Johari ORDER Learned counsel for both the parties conceded that this appeal is fully covered by decision of Division Bench of this Court delivered in D.B. Income Tax Appeal No.54/2007, CIT, Udaipur Vs. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted as real and genuine, they were required to be accepted and there was no reason to treat the assessee as the owner of the machinery. For such nature agreements and their legal implication, the principles of law expounded and explained by the Hon'ble Supreme Court in CIT Vs. Shaan Finance (P.) Ltd.: (1998) 231 ITR 308 could be noticed, for being of direct application to the present case, as under:- Neither of these cases deals with an agreement of hire of machinery in contradistinction to an agreement of hire purchase. When the machinery is given on hire by the owner to the hirer on payment of hire charges, the income derived by the owner is business income. The owner is also entitled to depreciation on the machinery so hired out. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties agreed that during the lease period, the lessor, Key Leasing and Finance Ltd., shall be the owner of the trucks and the lessee, i.e., the assessee, will have no right to transfer or alienate to other party in any form. Not only that the lessee as well as the lessor both have agreed that the depreciation which is permissible under the Income-tax Act, being the owner of the trucks, the lessor will have that right and benefit and it will get the benefit of depreciation on these trucks during this lease period, i.e., during the assessment years 1991-92, 1992-93 and 1993-94. It is also pertinent to note that the lessor has claimed this benefit and that has been allowed by the Department to the lessor, i.e., to the Key Leasing and Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and have rightly been reversed by the Appellate Authority. It may also be observed that the present appeal and other connected appeals were admitted with reference to the fact of admission of D.B.Income Tax Appeal No.23/2005. The said appeal has been decided by this Court alognwith cognate cases on 06.05.2008 in the decision referred by the learned counsel for the respondent, reported as Commissioner of Income-Tax Vs. Shree Rajasthan Syntex Ltd. (2009) 313 ITR 231. Therein, this Court considered the case of the assessee who had given the machinery on hire to another concern by way of different agreements; and the assessee claimed depreciation as being the owner of the machinery. This Court upheld the claim of depreciation as made by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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