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of <h1>Court affirms denial of depreciation claim on Flameless Furnace due to missing documents and lease explanation.</h1> <h3>M/s. Pebble Investment & Finance Ltd. Versus Income Tax Officer 4 (2) (1), Mumbai</h3> M/s. Pebble Investment & Finance Ltd. Versus Income Tax Officer 4 (2) (1), Mumbai - TMI Issues:Challenge to order of Income Tax Appellate Tribunal regarding depreciation claim on Flameless Furnace for Assessment Year 1996-97.Analysis:The appellant, engaged in financing and leasing, claimed depreciation on a Flameless Furnace leased to M/s. Omega Steel Industries Pvt. Ltd. The Assessing Officer disallowed the claim based on the statement of M/s. Omega's Director under Section 133A, stating no machinery was leased. The CIT(A) set aside the order for fresh assessment. In subsequent proceedings, the appellant failed to produce the lessee or crucial documents due to unknown whereabouts of the lessee. Despite submitting bank statements, invoices, lease agreement, and delivery chalans, confirmation from the lessee was missing. The Assessing Officer denied the claim after considering evidence, including the Director's statement. The CIT(A) and Tribunal upheld this decision due to lack of crucial documents and failure to explain the furnace's whereabouts.The appellant argued that documents submitted should have been considered, asserting the Director's statement lacked evidentiary value under Section 133A. The court noted Section 133A statements hold evidentiary value unless rebutted with contrary evidence or explanation. Citing a Madras High Court decision, the court rejected the appellant's reliance on the statement's alleged lack of credibility. The court emphasized that the appellant's failure to raise cross-examination during initial proceedings weakened their later request's credibility. Considering the delay in seeking cross-examination and the missing vital documents, the court found the authorities' consistent view, including the Tribunal's decision, reasonable. Consequently, no substantial legal question arose, leading to the dismissal of the appeal without costs.
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