9911796707
TMI Blog2014 (5) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... ring in support of this appeal submitted that in this appeal, the substantial question of law are thus which have been formulated at page 12 to 14 of the paper book, which read thus:- "(a) The substantial question of law that arises in the present appeal is regarding the true scope and correct interpretation of the provisions of the Income Tax Act, 1961 and whether on the facts and circumstances of the case and in law the Tribunal was right in upholding that the deletion of the disallowance on account of Aircraft re-delivery charges, Aircraft heavy maintenance and major engine repairs, which are in the nature of contingent expenditure and not on actual basis? (b) The second substantial question of law that arises in the present appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixtures as a revenue expenditure because of its enduring nature? (f) The sixth substantial question of law that arises in the present appeal is regarding the true scope and correct interpretation of the provisions of the Income Tax Act, 1961 and whether on the facts and circumstances of the case and in law the Tribunal was right in directing to treat interest receipts from short term deposits as 'income from business' instead of "income from other sources" as held by the Assessing Officer?" 3] In his submission, each one of the question can be termed as substantial question of law. They have a far reaching impact and bearing not only in relation to the present assessee but the aviation industry. He submits that such of the claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed on some of the deductions or questions. Mr. Pardiwalla submits that the tribunal was right in allowing the depreciation on aircraft taken on hire purchase of which the assessee is not the owner. In that regard, he relies on a circular which has been issued by the Department in relation to allowance in assessing business income de-preciation allowance - plant and machinery acquired on hire-purchase agreement. Mr. Pardiwalla submits that the circular No.9 of 1943 dated 23rd March, 1943 has clarified the matter. That circular has been applied in several instances. There are decisions of the Courts relying on this circular. The view based on this circular, therefore, cannot raise any substantial question of law. 4] In relation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of this Court and directed that it be considered in accordance with law. All that the Hon'ble Supreme Court emphasized is that if the delay could have been condoned by applying a liberal principle, then, this was a fit case where it should have been so condoned, moreso, when there are no malafides attributed to the revenue. Apart from that, we do not see anything in the order of the Hon'ble Supreme Court and which, with respect, oblige us to entertain this appeal on all the questions projected as substantial questions of law. 7] However, we find that in relation to question No.8 and deletion of disallowance on account of aircraft re-delivery charges, aircraft heavy maintenance and major engine repairs so also in relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Shri Pardiwalla cannot be said to be vitiated by any error of law apparent on the face of record or perversity. The appeal, therefore, is not entertained and rather dismissed in so far as question (b) is concerned. 9] Equally, we find that the tribunal's approach in allowing the provisions of spares obsolescence to be in consonance with the settled legal principles. The tribunal in relation to that claim has found that the assessee in this case has brought in material to show that the spares become absolete. Even if they are to be utilized or to be used in the Aircrafts, which have been taken either on lease or on hire-purchase, even then with advancement in technology the spares have lost their utility and value. For the very airc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view taken by the tribunal does not suffer from a serious legal infirmity or an error of law apparent on the face of the record. For this reason, we refuse to entertain this question as well. 10] In relation to the claim and which is stated to be covered by question of law (f) we find that the tribunal has considered the rival contentions. It has perused the record. It perused the requisite list. Most of the short term deposits are made in the banks as a margin money required for issue of letter of credit and commercial instruments required for the purpose of assessee's business. The tribunal, therefore, has come to a conclusion that the income should be assessed as income from business of the assessee and the residuary section as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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