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2012 (12) TMI 840 - HC - Income TaxDisallowance of lease rent – lease of plant & machinery used for business – Hire purchase - AO has allowed such deduction for the previous and subsequent assessment years – AO on the ground that machinery would become the property of the Lessee even though there is no agreement to that effect and ownership remains with the Lessor - Held that:- As concluding from the facts of the case that books of Lessor and taken into account as income of the Lessor and paid tax thereon. There is no material placed on record to show that the transaction is that of hire purchase and not lease agreement. The Revenue has not denied that it did not allow such deduction for the previous years and subsequent year of assessment year in question. AO has disallowed the deduction only for the A.Y 1997-98. Following the decision in case of S. A. BUILDERS LTD. (2006 (12) TMI 82 - SUPREME COURT) appeal decides in favour of assessee
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