2023 (5) TMI 1237

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....se, he Ld. CIT(A) has erred in law and facts in giving the direction on the Addition of Rs. 12,65,90,130/- on account of excess claim of Depreciation. 2. On the facts and under the circumstances of the case, the Ld. CIT(A) has erred in law and facts in dialing to adjudicate the issue on the which addition was made by the AO and instead allowing the relief subject to verification of the Finance Lease Agreement. 3. The appellant craves to be allowed to add any fresh grounds of appeal and / or delete or amend any of the grounds of appeal." 2. Brief facts of the case are that the appellant e-filed its return of income on 27.09.2011 for the Assessment Year 2011-12 declaring income of Rs. 2,10,99,76,285/- which was subsequent....

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....eciation impact on account of cars given on finance lease but depreciation calculated @30% 195.19     Less: Adjustment for assets considered under the head "computers" and office equipment consequent to the assessment order of assessment order of AY 10-11-This fact was clarified to the AO during assessment as this was one of the reasons for revising the income tax return. This is discussed in detail under para 5 of this submission. 99.29   2 Depreciation on cars given on fiancé lease   1265.90   Total   2291.58 5.1 Further, on perusal of the appendix - 'B' of clause 14 of depreciation of 3CD Audit report it is seen hat said amount of Rs. 1265.90 lacs as ....

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....decision on the issue of allowing depreciation in the heads of lessor in a leasing transaction and re-affirmed the position that in a leasing transaction it is lessor and not the lessee who is entitled to claim depreciation on the leased assets. Accordingly, the depreciation of Rs. 12,65,90,130/- on assets under "Finance Lease" is allowable in the case of the appellant unless specifically given away as per agreement. The AO is directed to verify the finance lease agreement and allow relief accordingly." 3. Against this order, the Revenue is in appeal before us. 4. We have heard both the parties and perused the records. We find that the Ld. CIT(A) has duly taken the note that after issuance of AS-19 issued by the ICAI, the CBDT vide Ci....