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2012 (10) TMI 509 - AT - Income TaxDisallowance of depreciation on leased asset - Assessee did not use the auto corners for its business purposes, but leased out the same - Shown the lease income under the head ‘business income’ and thereby claimed depreciation on the same – AO disallow the same on ground that leasing out of assets is not the business of the assessee – Held that:- As leasing of auto corners by the assessee is not treated as its business then also depreciation is allowable u/s 57(ii). We find that none of the lower authorities has given its finding in respect of allowability of depreciation on auto corners u/s 57(ii). It is not discernible whether the lease rent received by the assessee was assessed under the head ‘business income’ or under the head ‘income from other sources’. In our considered opinion, if the relevant lease rent derived from leasing of auto corners is assessed under the head ‘business income’ then assessee is eligible for depreciation u/s 32 and in case the said lease rent is assessed under the head ‘income from other sources, then assessee is eligible for depreciation u/s 57(ii). Remand back to AO – In favour of assessee TDS u/s 40(a)(ia) - JV was dated 10.6.2008 for commission payment on which TDS deducted and paid to the credit of the Central Government on 5.7.2008 – Deduction allowed in A.Y 2009-10 or 2008-09 – Held that:- As the method of accounting employed is mercantile. Therefore, the expenditure for which liability accrued to the assessee on or before 31.3.2008 is allowable to the assessee in assessment year 2008-09 irrespective of the date of entry made in the books of account. We find that both the lower authorities have not examined as to the date on which such commission became payable by the assesse. Issue remand back to AO
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