2016 (7) TMI 1388 - AT - Income Tax

Tribunal allows depreciation on leased assets, grants assessee's petitions. Order pronounced on 13th July 2016.

The Tribunal modified its direction to align with a previous decision, allowing depreciation on assets leased to specific companies. The assessee's ... Depreciation in respect of assets leased - miscellaneous applications filed by the assessee-bank seeking modification of the directions of the Hon’ble Tribunal as has not considered the finding given by this Tribunal earlier wherein directed the AO to allow depreciation in respect of assets leased to M/s.Rajendra Steels and M/s.Kedia Group of Companies Held that:- As in the light of this order, there was no need to set aside the issue relating to depreciation and the assets leased to back M/s.Rajendra Steels and M/s.Kedia Group of Companies to the file of the AO to. Accordingly, the said direction is modified as under: “Since the Tribunal, in ITA Nos.765, 766 & 767/Bang/2011 had directed the AO to allow depreciation in respect of leased assets to M/s.Rajendra Steels and M/s.Kedia Group of Companies, accordingly, we also direct the AO to allow depreciation on assets leased to M/s.Rajendra Steels and M/s.Kedia Group of Companies in accordance with order of the Tribunal in the above appeals. This ground of appeal is allowed.” Issues:Modification of directions by the Tribunal regarding depreciation claim for assets leased to specific companies.Analysis:The Appellate Tribunal received miscellaneous applications from the assessee-bank seeking modification of the directions issued in paras. 34 to 37 of a previous order. The Tribunal had initially directed the issue of depreciation claim to be restored to the file of the Assessing Officer. The assessee contended that the Tribunal did not consider a previous order where depreciation was allowed for assets leased to specific companies. After hearing both parties and examining the records, the Tribunal acknowledged that the previous order had directed the Assessing Officer to allow depreciation for assets leased to those companies. Consequently, the Tribunal modified its direction to align with the earlier decision, allowing depreciation on assets leased to the mentioned companies. As a result, the miscellaneous petitions filed by the assessee were allowed, and the modified order was pronounced in open court on 13th July 2016.