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2012 (8) TMI 282 - AT - Income TaxDisallowance of depreciation - iron rolls purchased by the assessee and leased back to the same party - CIT(A) allowed claim of depreciation - Held that:- Tribunal in this case had set aside the issue to the file of AO, to look into the fact as to what happened to the roll after expiry of lease period who has given a clear finding that the rolls remained with the original seller even after expiry of lease period. CIT(A) has however neither considered this aspect nor has given any finding on this issue - The transactions can not be considered as genuine merely on the ground that the same are supported by bills and agreements asfor a transaction to be a colourable device, it is not necessary that there should be pre-existing relationship between parties. As the Original seller had claimed 100% depreciation on the assets which shows that these were highly depreciable asset and the assessee however, has shown the purchase price of Rs. 34,97,500/- when ISIM had purchased the same at Rs. 36,88,540/- i.e. almost at the same price even after use and claim of 100% depreciation - as observations suggest that transaction may not be a genuine lease transaction but only a financial transaction order of CIT(A)for allowing the claim of depreciation is set aside and the issue is restored back for passing a fresh order after necessary examination - in favour of revenue.
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