2012 (10) TMI 509

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....essee. 3. The brief facts are that the assessee was having auto corners which were used by the assessee for the purpose of its business and were included in the 'block of assets' of the assessee. During the year under consideration, the assessee did not use the auto corners for its business purposes, but leased out the same. The assessee has shown the lease income under the head 'business income' and thereby claimed depreciation on the same. According to the Assessing Officer, under the provisions of section 32, depreciation cannot be allowed to the assessee on any asset which is not used for the purpose of the business of the assesse. The Assessing Officer further observed that depreciation is also not allowable on leased assets as the ....

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....6. The D.R, on the other hand, fully justified the action of the Assessing Officer. He also submitted that the assessee has not filed any copy of the lease agreement and without examining the nature of the lease, it cannot be said that depreciation claimed was allowable to the assessee even when the income from lease rental was assessable under the head 'income from other sources. He also argued that the assessee has also not filed copy of the balance sheet or computation of income to show that the lease rent was included by the assessee under the head 'business income'. 7. We have heard the rival submissions and perused the orders of the lower authorities and materials available on record. In the instant case, the undisputed facts are t....

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.... grounds of appeal of the assessee are allowed for statistical purposes. 8. In Revenue's appeal, the only issue raised is that the CIT(A) erred in deleting the disallowance of brokerage and commission. 9. The brief facts of the case are that during the year under consideration the assessee has paid brokerage and commission of Rs. 26,03,001/-. The Assessing Officer observed that the journal voucher was dated 10.6.2008 for commission payment to M/s Kedia Enterprises on which TDS of Rs. 3001/- was deducted and paid to the credit of the Central Government on 5.7.2008. From this he concluded that the payment relates to the assessment year 2009-10 and not the assessment year 2008-09 and therefore, disallowed the claim of deduction to the as....