TaxTMI 
TaxTMI 
2026 (7) TMI 1171
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....hree questions of law:- A. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was dismissing the Revenue's appeal without remitting the issue to the file of AO for fresh consideration? B. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in dismissing Revenue appeal though the AO has recorded categorically in Assessment Order that the assessee has not discharged its onus to prove that the other party has not claimed any depreciation? C. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is consistent in deciding the issue that the satisfaction of AO is mandatory that there is no claim of depre....
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....nd fleet management of vehicles given on lease. The Assessing Officer further noticed that the Assessee had shown income of Rs. 135,19,92,359/- as lease rent, and Rs. 30,22,37,218/- as fleet management income, besides other income of Rs. 16,70,984/-. The total expenses claimed in the Profit and Loss Account was Rs. 163,02,07,110/- out of which an amount of Rs. 74,14,49,570/- was claimed as depreciation on vehicles. 5. The Assessing Officer noted that the Assessee was giving vehicles on an operating lease basis and accordingly it is claiming depreciation on the vehicles leased. Since this depreciation was disallowed in the previous years the Assessing Officer called upon the Assessee to give details with evidence and justify their claim. ....
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....25th July 2017, noted the detailed contentions of the Appellant [from paragraph 4.1 onwards] and thereafter, in paragraph 5, after carefully considering the facts of the case, the Assessment Order, as well as the relevant case laws, came to the conclusion that the disallowance of depreciation amounting to Rs. 74,14,49,570/- was wrongly disallowed and therefore set aside the Assessing Officer's order to that extent. In coming to this conclusion the CIT (Appeals) noted the earlier orders passed by the CIT (Appeals) in the Assessee's own case for A.Y. 2007-08, A.Y. 2008-09, A.Y.2009-10 and for A.Y. 2010-11. The CIT (Appeals) also noted that the Hon'ble ITAT, Mumbai in their order dated 25th July 2016 for A.Ys. 2008-09 and 2007-08 as well as th....
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....f the customer. Further it appears that the Assessing Officer may have been under the impression that since the vehicle is not used by the Assessee Company it is not entitled to the depreciation. We find that these issues are squarely covered by the judgment of the Hon'ble Supreme Court in I.C.D.S. Ltd (supra). In this decision, the Hon'ble Supreme Court has inter alia noted the provisions in the Income Tax Act, 1961 regarding depreciation and thereafter came to the conclusion that in leases like present one, though the R.C. Book may be in the name of the lessee, nonetheless, the ownership of the vehicle is of the lessor. In the facts of the present case also the Assessing Officer noted the submission of the Assessee Company that the Mas....