Court affirms Tribunal's decision on depreciation claim, emphasizing asset ownership and business usage. Appellant's challenge dismissed.

The court upheld the Tribunal's decision regarding the depreciation claim, emphasizing ownership and usage of assets in the lessor's business context. The appellant's challenge was dismissed as the court found no legal flaws in the Tribunal's order, concluding that no substantial question of law arose. The assessee was deemed entitled to full depreciation based on ownership, leasing agreement, and asset delivery, affirming that the assets were utilized in the lessor's business.

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Issues involved:
1. Disallowance of depreciation by the Appellate Tribunal.
2. Ownership and usage of assets for depreciation claim.
3. Interpretation of legal precedents in the context of depreciation claim.

Analysis:
1. The appellant-Revenue challenged the Appellate Tribunal's decision to delete the disallowance of depreciation amounting to Rs. 1,18,10,500. The court noted that the Assessing Officer's observations were reiterated by the appellant's counsel. However, the court found no distinction in the facts of the present case compared to a previous case where the High Court followed the apex court's decision. The court examined the issue in light of legal precedents and the appellant's contentions.

2. Both the Commissioner (Appeals) and the Tribunal confirmed that the ownership of assets by the assessee-lessor was not disputed, and the delivery of assets was accepted. The court emphasized that there was no evidence suggesting that the assets were not utilized. The Tribunal's decision highlighted that the assets should be considered used in the lessor's business, not the lessee's, based on ownership, leasing agreement, and asset delivery. Therefore, the assessee was deemed entitled to full depreciation as of the delivery date.

3. Referring to a previous case, the court reiterated the apex court's position that when an assessee's business involves hiring out machinery and derives income from such hiring as business income, the machinery is deemed used for business purposes. In the absence of legal flaws in the Tribunal's order, the court dismissed the appeal, stating that no substantial question of law arose from the impugned order. The court upheld the Tribunal's decision regarding the depreciation claim based on ownership and usage of assets in the lessor's business context.

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