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Court upholds depreciation claim on assets leased to RSEB, leaves vehicle depreciation issue open The High Court dismissed the appeal without costs, upholding the depreciation claim on assets leased to RSEB due to the genuine nature of the transaction. ...
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Court upholds depreciation claim on assets leased to RSEB, leaves vehicle depreciation issue open
The High Court dismissed the appeal without costs, upholding the depreciation claim on assets leased to RSEB due to the genuine nature of the transaction. The Court decided not to address the issue of depreciation on vehicles leased to AMC, leaving it open for potential future consideration.
Issues involved: Appeal challenging depreciation claim on assets leased out to RSEB and depreciation on vehicles leased to AMC.
Depreciation claim on assets leased out to RSEB: The assessee claimed depreciation on Gas Booster Compressors & Fuel Oil Handling System leased to Rajasthan State Electricity Board. The Assessing Officer treated the transaction as hire-purchase, disallowing the depreciation claim. CIT [A] ruled in favor of the assessee, which was upheld by the Tribunal based on previous decisions. The High Court, citing a similar case, upheld the Tribunal's decision, emphasizing the genuineness of the transaction based on evidence on record. The Court dismissed the appeal, stating no reason to interfere.
Depreciation on vehicles leased to AMC: The appeal involved a depreciation claim of &8377; 7,112 on vehicles leased to AMC. The Court noted the negligible tax effect of the amount and decided not to delve into this question, leaving it open for consideration in future proceedings.
Conclusion: The High Court dismissed the appeal with no costs, upholding the depreciation claim on assets leased to RSEB based on the genuineness of the transaction and leaving the question regarding depreciation on vehicles leased to AMC open for future consideration.
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