2016 (7) TMI 1722

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....er Joginder Singh (Judicial Member) The Revenue is aggrieved by the impugned order dated 27/02/2015 of Ld. Commissioner of Income Tax, Mumbai allowing depreciation to the assessee on vehicles given on lease when the vehicles were not registered in the name of the assessee and were directly delivered to the parties using such vehicles. 2. During hearing of this appeal the learned D.R., Shri K....

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....d in the name of the parties who are using them and not in the name of the assessee. The learned Assessing Officer raised a query to the assessee with respect to its claim. The learned Assessing Officer disallowed the claim of depreciation. The claim of the assessee before the learned CIT(A) is as under: - "It was submitted that the maintenance service charges are estimated at the beginni....

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....ount is not considered as income of the year/period. This is in accordance with AS-9. Reliance was placed by him on the decision in the case of Asst. CIT vs. Mahindra Holiday Resorts (India) Ltd. (2010) 5 taxmann.com 55, CIT vs. Woodward Governor India Ltd. (2010) 195 Taxman 328 (Del), D.E. Sasoon and Company Ltd. vs CIT, 261 ITR 27 (SC), Calcutta Company Ltd. vs CIT, 37 ITR 1 (SC), Bharat Earth M....

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....h were leased out. However, we are making it clear that the learned Assessing Officer is to satisfy himself whether the parties who are using the vehicles may not get the benefit of depreciation and if it is found that the depreciation is claimed by the assessee as well as the parties who are using the vehicles, in that case the learned Assessing Officer is free to take a decision in accordance wi....