9911796707
TMI Blog2016 (2) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Respondent : Mr.R.Vijayaraghavan for M/s.Subbaraya Aiyar. COMMON JUDGMENT V.RAMASUBRAMANIAN, J These Tax Case Appeals filed by the Revenue, were admitted on 2.7.2008 on the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal was right in allowing depreciation on a sale and lease back transaction relating to wind electric generators, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d windmills and leased out the same to different parties to enable those parties to instal those windmills and generate power. For the Assessment Year 1996-97, the assessee claimed 100% depreciation in respect of some items and 50% depreciation in respect of other items. For the subsequent Assessment Years, the assessee claimed 50% depreciation per year. 5. The Assessing Officer disallowed the cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Commissioner. The Tribunal dismissed all the three appeals and restored the order of the Appellate Commissioner. Therefore, the Revenue is on appeal. 8. Admittedly, the assessee is in the business of hire purchase finance, leasing and allied activities and it is a non-banking finance company. The owner of the land on which the windmills were erected and installed wanted to set up a wind po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery. 12. If the second option is exercised, the financier claims depreciation, but treats the lease rentals as revenue income and pays tax. 13. Therefore, in either of the two options the borrower and financier are placed on different sides of the same table. In such circumstances, the question of the revenue losing something does not arise. 14. As rightly pointed out by the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
