Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
ITAT held that where a finance lease is in substance a financing arrangement, surrendered depreciation on lease assets renders principal recovery a return of capital and not taxable income; taxing principal while disallowing depreciation would be legally incongruous. As the AO accepted surrender of depreciation, the corresponding exclusion of principal recovery follows as a necessary corollary and must be allowed. The Tribunal affirmed that appellate authorities have plenary jurisdiction to determine correct taxable income on the record. Credibility of the assessee's treatment was bolstered by consistent prior conduct. The CIT(A)'s reduction of the addition to Rs. 8,45,72,646 is upheld and the Revenue's appeal is dismissed.
ITAT held that where a finance lease is in substance a financing arrangement, surrendered depreciation on lease assets renders principal recovery a return of capital and not taxable income; taxing principal while disallowing depreciation would be legally incongruous. As the AO accepted surrender of depreciation, the corresponding exclusion of principal recovery follows as a necessary corollary and must be allowed. The Tribunal affirmed that appellate authorities have plenary jurisdiction to determine correct taxable income on the record. Credibility of the assessee's treatment was bolstered by consistent prior conduct. The CIT(A)'s reduction of the addition to Rs. 8,45,72,646 is upheld and the Revenue's appeal is dismissed.
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