INCOME TAX ACT, 1961

Section 254 Section 32

Appeal (Tribunal) - Rectification of mistake under section 254 - Issue as regards denial of depreciation on financial lease - Copy of lease agreement not produced by assessee before Tribunal

Assessee filed instant miscellaneous application contending that there was mistake apparent in order of Tribunal, wherein order of AO, disallowing depreciation on machinery claimed by assessee, was upheld. As per the earlier Tribunal order in assessee's own case under similar facts, Tribunal held that lease transaction was sham because assessee on one hand paid value of machinery and at the same time, received equivalent amount as deposit and thus, there was no out flow of fund so as to validly make payment for purchase price. Held: Assessee did not make available copy of the lease agreement before Tribunal and because of that reason, Tribunal held in its order that there was no infirmity in assessment order on the issue, i.e., issue regarding disallowance of depreciation on finance lease. In the MPs filed by assessee, this was not the contention raised by the assessee that there was any mistake in this finding of the Tribunal that no lease agreement was made available before the Tribunal. Since this was the basis of the Tribunal's decision that in the absence of lease agreement, Tribunal had no option but to hold that there was no infirmity in assessment order on issue of disallowance of depreciation, various contentions raised by assessee in MPs, had no relevance for the purpose of deciding these MPs.

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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