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2011 (3) TMI 1447 - HC - Income TaxDisallowance of excess interest tax collected by the assessee - assessee collected excess interest tax which was not remitted to the Government as the same was excess collection – Held that:- assessee has not produced any material evidence towards payments of any amount to the corpus fund created by the Government in terms of the decision of the Supreme Court or evidence for payment to the Government of India, which of course is possible only through forfeiture of excess collection of tax under the Interest Tax Act, amount is retained by the assessee over which nobody has a claim, it has to be treated as income, appeal on this ground is accordingly dismissed. Disallowance of depreciation on the value of machinery leased out - depreciation claimed is on the entire value of machinery that is, Rs. 1,00,57,225/- on the ground that the item leased out is air pollution control equipment which is entitled for 100% depreciation – Held that:- when the lessor claims depreciation in respect of an item of machinery with reference to its use which is only made by the lessee, necessarily the lessee has to put to use the machinery for the purposes stated in the depreciation schedule to entitle it for the rate of depreciation provided therein. It is not a case of assessee claiming depreciation on an item of machinery but the depreciation claimed is in respect of pollution control equipment which identify at least the equipments has to assume at the end of the previous year. Therefore, in our view, at least assembling and commissioning of the system to get the identity with reference to the use of the machinery by the lessee is a mandatory requirement for eligibility for depreciation claimed by the lessor, appeal is dismissed
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