TaxTMI 
TaxTMI 
2013 (7) TMI 197
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....lowed in D.B. Income Tax Appeal No.54/2010, Commissioner of Income Tax, Udaipur vs. Banswara Syntex Ltd, decided on 12th February, 2013. The operative portion of order dated 15th January, 2013 (supra) reads, as under :- "After having given thoughtful consideration to the rival submissions and having examined the record, we are clearly of the view that this appeal remains bereft of merit and deserves to be dismissed. The facts of the case make it clear that the respondent-assessee had taken the machinery on lease from Gujarat Lease & Finance Ltd. and ITC Classic Finance Ltd. It has not been the case of revenue that the lease transactions were not genuine or were sham. The CIT(A) in his appellate order has clearly noticed the salient featur....
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....ent of the machinery. There is no extinguishment of any right of the owner in the machinery. There is merely a licence given to the hirer to use, for a temporary period, the machinery so hired......" (emphasis supplied) In the case of Rajshree Roadways (supra), this Court considered the matter where the lessee had the option of purchasing the trucks on payment of 1% of lease money at the end of the lease period but as regards the lease period, this Court found the lessor to be the owner of the trucks and the lessee having no right to transfer or alienate. Further, it had been agreed that the lessor would be entitled to claim depreciation as would be permissible under the Act, being the owner of the trucks. It was noticed that the deprecia....
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.... provisions of the Income-tax Act, there is no justification to treat the assessee also as the owner of these trucks during this period. There cannot be two owners indisputedly of the same property. In our view, the Tribunal has committed an error in restoring the view of the Assessing Officer. Therefore, considering the terms and conditions of the lease agreement and the fact that depreciation on these trucks has been allowed to the lessor, Key Leasing and Finance Ltd., now there is no justification to deny the claim of the assessee that his lease rent should be allowed as revenue expenditure. In our view, the Commissioner of Incometax (Appeals) has rightly allowed the claim of the assessee." In the present case too, the assessee had no r....