Tribunal allows depreciation claim on leased medical instruments, emphasizes "actually used" for business. Dismisses puja bonus disallowance.

The Tribunal allowed the depreciation claim on medical instruments given on lease, overturning the lower authorities' decisions. The requirement for assets to be "actually used" for business purposes to qualify for depreciation was emphasized. The issue of disallowance of puja bonus under section 43B was dismissed as not pressed by the appellant's counsel.

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Issues:
1. Disallowance of depreciation on medical instruments given on lease.
2. Disallowance of puja bonus under section 43B of the Income-tax Act.

Issue 1: Disallowance of Depreciation on Medical Instruments Given on Lease:
The appeal by the assessee challenges the order of the CIT(A) confirming the disallowance of depreciation on medical instruments given on lease. The Assessing Officer (AO) disallowed depreciation amounting to Rs. 22,30,944, stating that the assets were not actually used for business purposes. The CIT(A) upheld this decision, emphasizing the requirement for assets to be "actually used" to qualify for depreciation. The appellant argued that even passive use should suffice, citing case laws, but the CIT(A) found the appellant's explanations vague and lacking merit. The appellant's claim regarding the use of two flats for business purposes was also rejected due to insufficient evidence. The appellant contended that despite the temporary closure of the lessee company, the assets were leased out, justifying the claim for depreciation. The appellant provided lease agreements and argued that passive use of the medical equipment and the flats for business purposes should qualify for depreciation. The Tribunal agreed with the appellant, allowing the depreciation claim and reversing the lower authorities' decisions on this issue.

Issue 2: Disallowance of Puja Bonus under Section 43B:
The next issue pertains to the disallowance of puja bonus under section 43B of the Income-tax Act. The appellant's counsel conceded that they were not interested in pursuing this issue, leading to its dismissal as not pressed. Consequently, the appeal of the assessee was partly allowed, with the Tribunal ruling in favor of the appellant on the depreciation issue but dismissing the puja bonus disallowance under section 43B.

In conclusion, the Tribunal's judgment addressed the disallowance of depreciation on medical instruments given on lease, emphasizing the requirement for assets to be actually used for business purposes to qualify for depreciation. The Tribunal allowed the depreciation claim, overturning the decisions of the lower authorities. Additionally, the issue of the disallowance of puja bonus under section 43B was dismissed as not pressed by the appellant's counsel.

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