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TMI Blog2008 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... Jolly for the Appellant V. P. Gupta with Mr Basant Kumar for the Respondent JUDGMENT The judgment of the court was delivered by BADAR DURREZ AHMED, J (ORAL) - 1.The present appeal under Section 260 A of the Income Tax Act, 1961 (hereinafter referred to as the "said Act") has been preferred by the revenue against the order dated 31.08.2006 passed by the Income Tax Appellate Tribunal in ITA 5810/Del/1998 pertaining to the assessment year 1994-1995. 2. The learned counsel for the revenue challenged the said order of the Tribunal on four issues. The first issue was with relation to the deletion of the addition of Rs. 33 lacs, which had been made by the Assessing Officer on account of unexplained share capital under Section 68 of the said A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to the other party, namely, Magadh Leasing and Finance Ltd, and the associate parties, Mr D. N. Sahai, Ms Sushila Sahai and Daya Engineering Works Ltd, who had collectively introduced share capital to the extent of Rs 16 lacs, it had been noticed that the assessee had furnished their permanent account numbers, places of their assessment and confirmations from them, before the Assessing Officer. The said information was also filed before the Commissioner of Income Tax (Appeals). The amounts received from these shareholders were through cheques, which had been duly credited in the bank account of the assessee and these shareholders were also income tax assessees, who had also received dividends in respect of the shares. It was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was in favour of the assessee, came to the conclusion that the advances received from the customers by way of security deposits were duly accounted for in the lease rentals and were adjusted against the final sale price. Consequently, the security deposits could not be regarded as unexplained cash credits. It may be noted that the security deposits were received from customers who wished to purchase or take on hire, finance or lease any vehicle or plant or machinery from the assessee. The security deposits were either eventually refunded or adjusted against sale of the assets to the customers upon termination of the lease. The agreements which were entered into between the assessee and its customers, contained the period of lease, secu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase agreement which had been signed on 29.03.1994 was to take effect from 29.04.1994 and, therefore, depreciation could not be allowed for the year in question which ended on 31.03.1994. The Commissioner Income Tax (Appeals), after going through the lease agreement dated 29.03.1994, categorically observed that the commencement date of the said lease agreement was 29.03.1994. However, the lease money was payable in monthly instalments with effect from 29.04.1994. Both the Commissioner Income Tax (Appeals) as well as the Tribunal have concluded that the fact that the lease payments were to commence on 29.04.19994 did not make any difference to the fact that the lease, in fact, had commenced on 29.03.1994. Moreover, bills in respect of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said assets were purchased in financial year 1993-1994 and the rate per item is less than Rs 5,000/-. Also the copy of the Lease Agreement entered into between the appellant company and M/s Accurate Tubes Pvt. Ltd has also been filed, apart from tripartite agreement between the Allahabad Bank, the lessor and the lessee dated 18.03.1994. Keeping in view the facts and circumstances of the case I have no hesitation in holding that the Assessing Officer has acted in an arbitrary manner in denying the deprecation claim on rolls. The said claim of 100% is clearly admissible under the first proviso to Section 32 (1)." We see no reason to interfere with these findings. 8. No substantial question of law arises for our consideration. The appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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