2008 (9) TMI 126

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....gment of the court was delivered by D.A. MEHTA J.- The Appellant-Revenue has proposed the following question : "Whether the Appellate Tribunal is right in law and on facts in holding that the transaction of sale and lease back was genuine and the assessee was entitled to depreciation?" 2. The Assessment Year in question is 1995-96. The Tribunal in its order dated 30.11.2006 has recorded t....

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....than State Electricity Board the transaction of lease is not genuine and hence the assessee is not entitled to depreciation. It is further submitted that Commissioner (Appeals) and the Assessing Officer having found that the transaction was not genuine the Tribunal had committed an error in treating the transaction as genuine without properly appreciating various clauses of the lease deed. It was ....

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....ing the aforesaid case, we find that in the case before us the invoices are in the name of the assessee as is clear copy of these invoices appearing at pages 59 to 63 of the paper book. Similar transaction was held to be genuine transaction by Hon'ble Rajasthan High Court in the case of CIT v. Rajasthan State Electricity Board [2006] 204 CTR (Raj) 415, therefore, transaction in question is held to....

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....Rajasthan was called upon to deal with is the same transaction which has been found to be genuine by the Tribunal in the present case. The lease rental paid by Rajasthan State Electricity Board has been found by Rajasthan High Court to be allowable deduction as the transaction is genuine. Correspondingly, in hands of the assessee company, the said lease rental has been taxed as business income and....