2003 (9) TMI 25

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....ing questions have been proposed by the appellant-Revenue stated to arise out of the Tribunal's order dated March 13, 2002, in I. T. A. No. 3614/Ahd of 1995: "(i) Whether the Appellate Tribunal is right in law and on facts in holding that the assessee engaged in the business of lease finance is entitled to depreciation under section 32 of the Income-tax Act, 1961, on the assets merely on signin....

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....owed by the Assessing Officer as, according to the Assessing Officer, the asset was not used either by the assessee-company or the lessee. Alternatively, the Assessing Officer held that the boiler in question was not a high efficiency boiler and hence, was eligible only at 40 per cent. depreciation. The assessee carried the matter before the Commissioner of Income-tax (Appeals) and succeeded on th....

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....half of the respondent. The principal contention raised on behalf of the Revenue was that the use contemplated by section 32 of the Income-tax Act, 1961 (for short "the Act") was actual user and only then allowance which would be in the nature of the deduction for wear and tear could be granted to the assessee. In relation to the decision in the case of Shaan Finance P. Ltd. [1998] 231 ITR 308,....

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....n the concept of user as being a necessary element before depreciation could be allowed as a deduction. There is no dispute as to the basic fact that the assessee before us is carrying on business of leasing of assets. That the asset in question, viz., the boiler, had been leased out by the assessee. It is further an admitted position that income from the business of leasing has been subjected ....