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| The Tax Publishers2020 TaxPub(DT) 1886 (Bang-Trib) INCOME TAX ACT, 1961
Section 263
Issue involved was squarely covered by Tribunal order in assessee's own case in which it was held that assessment order passed by AO was neither erroneous nor prejudicial to the interest of revenue as finance lease transaction was thoroughly examined by AO in the light of evidence filed by assessee and assessee was entitled for depreciation.
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Revision under section 263 - Erroneous and prejudicial - Depreciation on the opening written down value ('WDV') of the block of assets leased out under finance lease arrangement -
CIT invoked power under section 263 on the ground that no enquiry was made by AO with regard to allowability of depreciation on leased networking equipments and audio streamlining equipments without ascertaining whether assessee could be considered to be the owner of assets as was required in section 32. Held: It was noted by AO that on account of substantial part of lease transactions conducted by the assessee being claimed as finance lease on which lessee was claiming depreciation under the Companies Act instead of lessor claiming the depreciation. This fact was very much in the order of assessment that assessee was claiming depreciation on assets leased out by it under finance lease and after making enquiry, the said depreciation was allowed by AO in the assessment order and hence, the issue involved in the present year is squarely covered by the Tribunal order in assessee's own case in which it was held that assessment order passed by AO was neither erroneous nor prejudicial to the interest of the revenue as the finance lease transaction has been thoroughly examined by AO in the light of evidence filed by assessee.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2010-11
IN THE ITAT, BANGALORE BENCH
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