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2015 (1) TMI 516 - AT - Income TaxDepreciation - disallowance of claim in respect of assets given on lease by the appellant by holding them as pure finance transactions - Held that:- Despite the fact that the assessee had prayed for joint inspection of leased assets and evidences there off, the revenue authorities brushed aside the requests made. This, is against the principals of natural justice, which can only be remedied by restoring the issues/transactions to the file of the AO for fresh adjudication. We, therefore, set aside the order of the CIT(A) and direct the AO to examine the transactions with Kedia Group of companies, REPL Engineering Ltd., Patheja Bros Forging & Stampings Ltd., and Padma Alloys Castings Ltd. afresh, for the allowance and claim of depreciation as per law and judicial decisions as mentioned in pre para - Decided in favour of assessee by way of remand. Deduction u/s 80M - Held that:- Even 1% disallowance upheld by the learned CIT(A) is on the higher side because the assessee's business was not to earn dividend income and the main activity is to give loans and as the name itself suggests, the bank is engaged in the industrial development of the country by advancing thousands of crores to the entrepreneurs. The loans advanced by the bank during the year under appeal stood over 20,000 crores. We set aside the order of the CIT(A) and delete the addition as made by him - Decided in favour of assessee.
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