2014 (6) TMI 1028

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....n of leased assets also. The depreciation claim relates to assets leased to educational institutions like KMC, MIT etc. which are controlled by the same group. The modus operandi of these transactions are that the assessee supplied these machineries to these institutions against deposit of any equivalent amount to the cost of themachinery. The interest payable by the assessee on these deposits is equivalent to lease rent payable to the assessee. The lessee being the educational institutions are exempt from tax. By these self cancelling transactions, the assessee gets the benefit of depreciation without having any tax liability in any of the years. These transactions are noticed for earlier years also. The CIT (Appeals) and ITAT have upheld ....

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....ess the assessee is carrying on and therefore, the judgment of the Apex Court reversing the judgment of this Court in M/s ICDS Limited equally applies to the facts of this case and therefore, the order passed by the tribunal disallowing the depreciation claimed is liable to be set-aside. Accordingly, no substantial question of law do arise for consideration as the Apex Court has declared the law. 3. The other claim pertains to lease equalization reserve. The previous year involved in the case is 31.3.1998 and the assessment year is from 1.4.1998 to 31.3.1999. In order to over come such claim, by Finance Act No.2/2009 which came into effect from 1.4.1998 clause (g) was substituted to explanation to Section 115JA of the Act. This Court had ....