|The Tax Publishers2020 TaxPub(DT) 4741 (Karn-HC)
INCOME TAX ACT, 1961
Where transactions of assessee with the companies in question was genuine and the assets, which were leased out were in existence, assessee was entitled to depreciation.
Depreciation - Allowability - Assets leased out to various companies -
The question arose for consideration was as to whether or not the assets leased out by the assessee to various companies were in existence at the relevant time and whether the transactions in question were genuine or not for allowability of depreciation on leased asset. Held: Assessee has produced sanction letters, master/supplemental lease agreements, purchase invoices, installation certificates and inspection reports, a joint inspection conducted by the bank officials, independent valuation report in respect of assets leased out to the companies as well as inspection reports pertaining to pre-search and post-search period. Thus, transactions of the assessee with the companies in question was genuine and the assets, which were leased out were in existence and the assessee was entitled to depreciation.
REFERRED : Vijay Kumar Talwar v. CIT (2011) 330 ITR 1 (SC) : 2011 TaxPub(DT) 693 (SC), Sudarshan Silks & Sarees v. CIT (2008) 300 ITR 205 (SC) : 2008 TaxPub(DT) 1212 (SC), Kulwant Kaur & Ors. v. Gurdial Singh Mann (Dead) by Lrs & Ors. (2001) 4 SCC 262, Santosh Hazari v. Puroshottam Tiwari (2001) 3 SCC 179 : 2001 TaxPub(DT) 1102 (SC), K Ravindranathan Nair v. CIT (2001) 247 ITR 178 (SC) : 2001 TaxPub(DT) 871 (SC), Pr. CIT v. Softbrands India (P.) Ltd. (2018) 406 ITR 513 (Karn) : 2018 TaxPub(DT) 3520 (Karn-HC).
FAVOUR : In favour of assessee.
A.Y. : 1996-97
IN THE KARNATAKA HIGH COURT
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