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 - allow depreciation on leased assets - restoration to the Assessing Officer - modification of Tribunal order - precedent Tribunal directionDepreciation - allow depreciation on leased assets - precedent Tribunal direction - modification of Tribunal order - Direction restoring issue of depreciation to the Assessing Officer modified to direct allowance of depreciation for specified leased assets in accordance with earlier Tribunal orders. - HELD THAT: - The Tribunal examined the submissions that its earlier direction to remit the depreciation issue to the Assessing Officer overlooked the Tribunal's prior decision in ITA Nos.765, 766 & 767/Bang/2011 which had directed the AO to allow depreciation in respect of assets leased to M/s. Rajendra Steels and M/s. Kedia Group of Companies. Upholding that precedent, the Tribunal held there was no need for fresh remand on that aspect and accordingly modified paras.34-37 of the earlier order. The Tribunal directed the Assessing Officer to allow depreciation on the assets leased to the named lessees in accordance with the Tribunal's directions in those appeals, thereby replacing the earlier direction to restore the issue to the file of the AO with a positive directive to give effect to the prior Tribunal ruling. [Paras 3]Miscellaneous petitions allowed; direction restored is modified to direct the AO to allow depreciation on assets leased to M/s. Rajendra Steels and M/s. Kedia Group of Companies in accordance with the Tribunal's earlier orders.Final Conclusion: The Tribunal allowed the miscellaneous petitions and modified its earlier direction by directing the Assessing Officer to allow depreciation on the specified leased assets in conformity with the Tribunal's prior orders. 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.