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2012 (7) TMI 755 - KARNATAKA HIGH COURTDisallowance of depreciation - ownership - lease out of the vehicles - lease rental taken as income of the appellant – Held that:- Merely because they did not respond or the assessee did not furnish the correct addresses of those persons to be summoned, it does not lead to an inference that the assessee ceased to be a owner - ownership of the assessee is demonstrated by the purchase receipt as well as the agreement - no other person other than the assessee claims the ownership of the vehicles. Therefore, the authorities were not justified in drawing an adverse inference and in holding that the assessee is not the owner. Merely because the vehicles were used by the lessees in their business, the assessee cannot be denied the depreciation @ 40% - If the authorities were of the view that the assessee has failed to prove his ownership over those vehicles, then, if depreciation is to be disallowed then they also should not have taken that lease rental agreement for the purpose of making the assessment - subsequent years, the assessee had been granted the benefit of depreciation. Therefore, the order to be passed by the authorities should be consistent. The approach of the authorities in so far as current assessment year is concerned is contrary to law and requires to be set aside - appeal is allowed
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