TaxTMI 
TaxTMI 
2006 (1) TMI 107
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....ected the claim for depreciation made by the assessee on that finding. The assessee appealed to the Commissioner of Income-tax (Appeals) against the said finding who upset the view taken by the Assessing Officer. The Commissioner of Income-tax held the purchase of the machinery by the assessee from M/s. Assam Solvex P. Ltd., Assam, and Perfect Engineering P. Ltd. to have been established. The Commissioner further held that the machines had in fact been leased to M/s. Sitapur Plywood Manufacturing P. Ltd. and installed in their plywood manufacturing unit which sufficiently established the use of the machines even by the lessee. On those two findings the Commissioner allowed the claim for depreciation made by the assessee. In a further appeal....
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.... to the lessee. Even on the question of actual user by the lessee the Tribunal held that the machine having been installed at the place of the lessee, its user was established in the absence of any evidence to the contrary. The following passage from the order passed by the Income-tax Appellate Tribunal is relevant in this regard: "As regards the use of the said machinery, it is observed that the same were meant for pollution control in the plywood manufacturing unit and having held that the same were installed and being used by M/s. Sitapur Plywood Manufacturing P. Ltd. in their plywood manufacturing unit, such use stands automatically established especially when there is nothing brought on record to prove otherwise. As regards the disput....
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....ommissioner of Income-tax (Appeals) and the Tribunal. That leaves only one aspect for our consideration namely whether the said machines were utilised by the assessee for its business so as to entitle it to claim depreciation in terms of section 32 of the Act. The Tribunal has answered the question of utilisation of the machines also in favour of the assessee. It has followed the decision of this court in Capital Bus Service P. Ltd.'s case [1980] 123 ITR 404 and the view expressed by the Kerala High Court in Geo Tech Construction Corporation [2000] 244 ITR 452 to hold that once the machines are shown to have been handed over to the lessee, the same must be deemed to have been utilised for the business of the assessee especially when the ass....