Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (12) TMI 51 - HC - Income TaxCollection of contingency deposit against payment of sales tax would form part of the income - Held That:- In view of COMMISSIONER OF INCOME-TAX .vs. SOUTHERN EXPLOSIVES CO., (1999 - TMI - 15363 - MADRAS High Court ), wherein it has been held that 'the receipt of the amount for payment of sales tax and keeping it in deposit would amount to a "revenue receipt" and it would form part of the assessee's income'. - Decided against assessee. Depreciation on leased assets can be allowed in a year when the assets had not yet been put to use by the lessee - Assessee relied on COMMISSIONER OF INCOME TAX vs. KOTAK MAHINDRA FINANCE LTD (2009 - TMI - 33331 - BOMBAY HIGH COURT) where it was held "The assessee, admittedly had supplied the machinery before the end of the financial year and the assessee had received the lease rentals for the same. Whether the lessee had put to use the leased equipment would be irrelevant as long as the machinery in fact had been given on lease before the end of the financial year, as then it could be said that the assessee for the purpose of business had "used" the leased equipment. The assessee was entitled to depreciation". and COMMISSIONER OF INCOME-TAX .vs. REETU FINLEASE P.LTD (2006 - TMI - 9924 - DELHI High Court) "In the absence of any evidence to the contrary once the machines were installed at the place of the lessee it could be presumed that they had been utilised, even assuming that such actual user was a condition precedent for the lessee to claim depreciation. The assessee was entitled to the depreciation" - Held That:- We are unable to appreciate the contentions made by the Revenue that actual date on which the asset was put to use alone has to be taken into consideration. Decided in favour of assessee.
|