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2014 (11) TMI 1087 - AT - Income TaxOwnership of an asset - Depreciation claim - Sham transactions - Held that:- The factum of repossession of equipment has not been disputed by the revenue authorities. This clearly means that lessee is not the owner and that the lessee has not claimed depreciation. This clearly shows that lessor is the owner and it is he who can make the legal claim for ownership and depreciation. We, therefore are of the considered view that despite the fact that the complete facts were before the CIT(A), the CIT(A) either did not consider them or that he did not go into the facts, which were brought out by the AO in the remand report. We further hold that there was no question of sham transaction, because, the assessee was dealing with corporates as well as State Government agencies. In these circumstances, the claim of the assessee cannot be held to be sham and have to be taken to be genuine, and therefore allowable.
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