2014 (7) TMI 1173

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..... 3827/M/00 - A.Y. 1998-99 2. The assessee has raised two substantive grounds of appeal. Ground No. 1 relates to the disallowance of depreciation amounting to Rs. 1,21,17,844/- in respect of sale and leaseback transactions and ground No. 2 relates to charging of interest u/s. 234B and 234C of the Act. 3. The assessee is a non-banking financial institution in which public are substantially interested. During the year under consideration, the assessee claimed depreciation of Rs. 2,59,23,109/- out of this depreciation, Rs. 2,54,59.134/- was claimed on leased assets. During the year, the assessee acquired assets worth Rs. 17.21 crores and gave them on lease to various concerns. Out of this, assets worth Rs. 9.69 crores were involved in sale ....

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.... perused the orders of the lower authorities and the relevant material evidences brought on record before us. We have also carefully gone through the decisions relied upon by both the parties. In so far as the issue relating to the claim of depreciation on leased transactions is concerned, we find force in the submission of the Ld. Sr. Counsel that the Hon'ble Supreme Court in the case of ICDS vs. CIT, 350 ITR 527 (supra) had the occasion to consider the question - "whether the Assessee is entitled to depreciation on vehicles financed by it which is neither owned by the Assessee nor used by the Assessee?" The Hon'ble Supreme Court after perusing the lease agreement and other related factors held that the lessor is the owner of the vehicle....

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..... 13. In the result, the appeal filed by the assessee is partly allowed. ITA No. 1881/M/2000- A.Y. 1993-94 14. The sole grievance of the assessee relates to the disallowance of depreciation on asset leased to Gujarat Electricity Board. 15. A perusal of the assessment order shows that the claim of depreciation has been disallowed for similar reasons as they were for A.Y. 1998-99. We have considered this issue qua ITA No. 3827/M/05 wherein we have decided this issue in favour of the assessee following the decisions of the Hon'ble Supreme Court and High Courts and also the Tribunal Mumbai Benches. Respectfully following our own findings in ITA No. 3827/M/05, the AO is directed to allow the claim of depreciation on asset leased to Gujarat E....

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....vidend. 22. During the course of the assessment proceedings, the AO noticed that the assessee has claimed deduction u/s. 80M amounting to Rs. 7,69,28,106/- on which the assessee claimed that no expenditure has been incurred on earning this dividend and deduction u/s. 80M is to be allowed on the gross dividend. 23. The assessee substantiated its submission by stating that in earlier years the Appellate authority has held that disallowance of Rs. 1,00,000/- as expenditure for the purpose of Sec. 80M would meet the ends of justice. The AO did not accept the claim of the assessee and went on to compute the disallowance at Rs. 7,69,281/-. 24. Aggrieved, assessee carried the matter before the Ld. CIT(A). The Ld. CIT(A) confirmed the disallowan....