2025 (6) TMI 1794

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....22,09,817/- on account of disallowance of depreciation, by disregarding the appellant submission, the claim of deprecation is fully allowable as per the provisions of law, and therefore disallowance of depreciation, amounting to Rs. 22,09,817/- be allowed in full. Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal before or during the course of hearing in the interest of natural justice." 3. Facts of the case, in brief, are that the assessee is a cooperative society originally engaged in the manufacture of sugar and subsequently leased out its factory to other for the purposes of manufacturing of sugar and crushing of sugarcane. The assessee c....

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.... assessment 143(3) r.w.s. 143(3A) & 143(3B) of the Act was completed on 05.04.2021 by assessing the total income Rs. 22,09,817 by disallowing the claim of depreciations 5.1. The AO held that as the appellant is not operating the sugar factory for production and had leased it out from F.Y 2013-14 onwards, the appellant was not eligible to claim depreciation from this asset u/s 32 of the I.T.Act, 1961. 5.2. The appellant has relied on the Indian Accounting Standard 19 claiming that the lessor is eligible to claim depreciation on the leased asset. The appellant further justified the claim for depreciation stating that though the factory was leased out, it was still being used for the purpose of business i.e. crushing of sugar cane. 5.....

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....as also subject to scrutiny but no such disallowance of depreciation was made by the Assessing Officer. It was contended before the Bench that the assets were leased out for the purposes of manufacturing of sugar and cane crushing that is for business purposes and the assets were admittedly owned by the assessee since the depreciation claimed was allowed in earlier years also. Ld. AR relied on the order passed by a Coordinate Bench of this Tribunal in the case of IndusInd Bank Ltd vs. Addl. CIT, Special Range, Mumbai [2012] 19 taxmann.com 173 (Mumbai) wherein it was held that only the lessee can be treated as owner of the asset in case of a finance lease and it is he who is entitled to claim depreciation as per law and depreciation can be a....