TaxTMI 
TaxTMI 
2011 (1) TMI 1181
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.... was not put to use. Therefore, there is no question of allowing any depreciation thereupon. In the process, the AO also noted that the assessee had given the said aircraft on lease and even the lease rental was not charged and the assessee had granted moratorium in respect thereof. The Income Tax Appellate Tribunal has allowed the depreciation, inter alia, observing that there was no finding of the AO that during the entire year, the aircraft was not put to use. In these circumstances, it is the argument of the learned counsel for the Revenue that the matter could have been remitted back to the AO to record the finding thereupon. 2. The respondent/assessee on the other hand pleads that the order of the Tribunal is perfectly justifi....
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....g to Rs. 43,57,834/- at the rate of 40% on the aircraft on the ground of his ownership still being vested with the assessee company. It is therefore, concluded that since the assessee company has not put the aircraft to use for his business purpose, the depreciation as claimed by him is not admissible". 4. The aforesaid decision of the CIT (A) has been upheld by the Tribunal vide impugned order dated 14th January, 2010 on the following basis:- "Rival contentions have been heard and found from the record that assessee company itself was running the airlines. Accordingly, the aircraft was used for its business purposes. W.e.f. 1st July, 1994, it had leased two Dornier Aircrafts to M/s Jagson Airlines Limited which were put into operat....
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....deration, the Aircraft was grounded and at the same time, reason for allowing the depreciation is that there was no finding recorded by the Assessing Officer that the Aircraft was not put to use. This appears to be self-contradictory. 6. Be as it may, as per the Assessing Officer even when this Aircraft was leased, no lease rent, as agreed upon, was charged and moratorium granted in this behalf by the assessee, the Aircraft could not be treated as „put to use‟. For this reason, the Assessing Officer did not go specifically into the question as to whether the Aircraft was grounded during the whole year. We, thus, agree with the contention of the learned counsel for the Revenue that if there was no specific finding recorde....