Tribunal allows depreciation on assets, overturns disallowance, upholds shortage addition.

The tribunal allowed depreciation on trucks purchased from DCM Toyota Ltd. as ownership and business usage were established despite an initial disallowance. Similarly, depreciation on gas cylinders leased to National Air Products Ltd. and photocomposing machines leased to Designers Pvt. Ltd. was permitted based on ownership evidence. Disallowance of user charges paid to Goyal Gases Pvt. Ltd. was overturned. However, an addition of Rs. 85,655 for a shortage in liquid oxygen was upheld due to lack of satisfactory explanation. The tribunal partially allowed the appeal concerning unabsorbed depreciation and interest recalculations.

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Issues involved:
1. Depreciation on trucks purchased from DCM Toyota Ltd.
2. Depreciation on gas cylinders leased to National Air Products Ltd.
3. Depreciation on photocomposing and typesetting machines leased to Designers Pvt. Ltd.
4. Disallowance of user charges of trucks paid to Goyal Gases Pvt. Ltd.
5. Shortage in liquid oxygen leading to an addition of Rs. 85,655.
6. Direction for allowing unabsorbed depreciation and recalculating interest leviable.

Depreciation on trucks:
The assessee purchased 15 trucks from DCM Toyota Ltd. and claimed depreciation, which was initially disallowed due to a lease agreement effective before truck delivery. However, the trucks were registered in the assessee's name before the accounting period ended, and the lease agreement indicated ownership and usage for business purposes. The tribunal directed the allowance of depreciation on the trucks.

Depreciation on gas cylinders:
The assessee purchased 3,000 gas cylinders from National Air Products Ltd. and leased them to NAPL. The managing director of NAPL confirmed the sale and lease transactions, supporting the assessee's ownership and usage for business. Constructive delivery of the cylinders was established, entitling the assessee to depreciation as ruled by the tribunal.

Depreciation on photocomposing and typesetting machines:
The assessee purchased machines from Abinav Publishing Industries Pvt. Ltd. and leased them to Designers Pvt. Ltd. The machines were delivered, leased, and lease charges received, demonstrating ownership and business usage. The tribunal directed the Assessing Officer to allow depreciation on these machines.

Disallowance of user charges of trucks:
Similar to the above issues, the disallowance of user charges of trucks paid to Goyal Gases Pvt. Ltd. was deemed unwarranted by the tribunal, based on detailed reasons provided in the assessment year's appeal orders.

Shortage in liquid oxygen:
An addition of Rs. 85,655 was made due to a shortage in liquid oxygen, with the authorities citing a lack of satisfactory explanation from the assessee. The tribunal upheld the disallowance due to insufficient evidence provided by the assessee.

Unabsorbed depreciation and interest recalculations:
The tribunal did not find any interference necessary regarding the direction for allowing unabsorbed depreciation and recalculating interest leviable, resulting in a partial allowance of the appeal.

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