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2017 (1) TMI 723 - BOMBAY HIGH COURTClaim of investment allowance u/s.32A on the value of the plant and machinery leased out by the assessee - Held that:- The same question is answered in CIT vs. Industrial Credit & Investment Corporation of India Ltd. (2005 (2) TMI 863 - BOMBAY HIGH COURT) answered in the affirmative, relying on CIT vs. Shaan Finance (P.) Ltd. (1998 (3) TMI 8 - SUPREME Court) here the business of the Assessee consists of hiring out machinery, or where the income derived by the assessee from the hiring of any machinery is business income, the assessee must be considered as having used the machinery for the purpose of its business. So when a leasing or finance company, which owns the machinery, leases it to the third parties who use the same for manufacture in accordance with Section 32A(2)(b)(iii), the former is entitled to investment allowance in respect of such machinery under Section 32A. - Decided in favour of the Assessee Additional depreciation on the assets leased out by the assessee - Held that:- The decision of Shaan Finance (P.) Ltd. (1998 (3) TMI 8 - SUPREME Court ) is squarely applicable to the claim of additional deprecation. The question is, accordingly, answered in the affirmative, i.e. in favour of the Assessee and against the Revenue. Extra shift allowance of depreciation - Held that:- Supreme Court, in the case of CIT vs. Maharashtra Apex Corporation Ltd. (2001 (9) TMI 4 - SUPREME Court ), following the ratio of Shaan Finance (P.) Ltd. (supra), has held that the assessee was entitled to extra shift allowance of depreciation, even though it was the lessee, and not the assessee, who had used the machinery in double shift. The decision squarely covers the Assessee's case herein. There is no dispute that the respective lessees of the Assessee had worked in extra shift. In his order, the CIT(A) has clearly recorded that “the lessees had worked extra shift and relevant certificates were produced before the Assessing Officer.” The Question is, accordingly, answered in the affirmative, i.e. in favour of the Assessee and against the Revenue.
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