2007 (10) TMI 276

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....nbsp;               2. The assessee is a company engaged in the business of leasing and finance. For the assessment year 1996-97, the assessing officer, while making the original assessment, has called for the basic details regarding two purchasers. After receipt and taking into consideration of the details furnished by the assessee, the Assessing Officer came to the conclusion that the purchase of two items and leasing them to related parties do not fall under the category of sale and lease back transaction and therefore, the Assessing Officer has not made any further investigation. The Assessing Officer disallowed the depreciation in respect of machineries got back u....

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.... 4. We heard the argument of the learned counsel for the revenue and perused the materials on record. 5. In the original assessment order passed by the Assessing Officer, it was held that the assessee was asked, vide questionnaire dated 31.8.1998 to give invoices for assets on which depreciation was claimed during the year (100% rate and 40% rate) along with list of lease transactions. The assessee submitted that information on 4.12.1998. In order to verify the genuineness of these transactions, a notice under section 133(6) calling for certain information was issued to all the lessees and suppliers involved in the lease transactions. Further, the assessee was asked to clarify vide letter dated 18.12.1998 whether they had entered into an....