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| The Tax Publishers2020 TaxPub(DT) 4774 (Karn-HC) : (2021) 431 ITR 0303 : (2021) 276 TAXMAN 0392 INCOME TAX ACT, 1961
Section 32
Where assets were in existence at the relevant time and where the transactions in question of leasing out assets to various companies was also genuine, no disallowance of depreciation claim could be made.
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Depreciation - Allowability - Assets leased out to various companies -
Assessee claimed depreciation on assets leased out to various companies of which disallowance was made by AO during assessment proceedings. Held: Assessee had 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. On the basis of the aforesaid material on record, it was held that the transactions of assessee with the companies in question were genuine and the assets, which were leased out were in existence and the assessee was entitled to depreciation.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 1999-2000
IN THE KARNATAKA HIGH COURT
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