9911796707
TMI Blog2018 (7) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case, the building held on long term lease for 99 years and used admittedly for the purpose of business is eligible for depreciation allowance under Section 32, the long term lease being equivalent to ownership of the building? (b) Whether any part of the business expenditure can be disallowed under Section 14A on ad-hoc estimate of 1% of the dividend income where the investment of the assessee in securities has an integrality with the assessee's business as the guidelines of the Reserve Bank of India imposed on a Residuary Non-Banking Financial Company the mandatory requirement to have its funds invested in securities for the grant of the licence to carry on its business and the dividend is merely a by product and auto-genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 27(iiib) of the said Act a lessee of a building or plant with a lease of 12 years, as the assessee claims to be, in which business is carried out, would be deemed to be the owner of the said building. The assessee says that by virtue of holding this lease they are entitled to claim depreciation under section 32 of the said Act. We find on an examination of the subject order of the tribunal that in legal principle the tribunal has not been able to deny the claim that a lessee of over 12 years of a place of business is deemed to be the owner under the Income Tax Act, 1961 and can claim depreciation. But as far as the case of the assessee is concerned, we find that the Tribunal has not been able to come to any clearcut finding as to wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was expected to allow deduction which had been actually determined by the Department and not on a random basis. We share this view. The view expressed by a Division Bench of this Court in Commissioner of Income Tax vs. Crish Park Vincom Ltd. reported in 371 ITR page 15 that in appeal this Court should not interfere with the findings of fact is correct on legal principles. But unfortunately there is no finding or determination of deductible expenses, in this case. Therefore, as far as both these issues are concerned, the questions are remitted back to the Tribunal to redetermine them in accordance with law, withing a period of six weeks from the date of communication of this order. Those parts of the subject order of the Tribunal deal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
