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2015 (9) TMI 429 - AT - Income TaxValidity of reopening of assessment - Held that:- AO assumed the jurisdiction u/s 148, once a definite information was received from the office of DIT (Invt.), Ludhiana. This, according to us is a good enough reason to initiate proceedings for reopening. As mentioned by the revenue authorities that it was not a case, where four years had elapsed and that the AO needed some evidence of incriminatory nature to initiate the reassessment proceedings.We, therefore sustain the order of the CIT(A) on this issue and sustain the reopening of assessment u/s 147/148. - Decided against assessee. Disallowance of depreciation on the Air Pollution Control Equipment leased to Prakash Industries Ltd on the ground that the real nature of the transaction is finance lease and the appellant is not entitled to depreciation - Held that:- The fact that the assessee took the issue before the Arbitration itself goes to prove that the transaction was genuine. From the details as filed by the assessee we find that as a consequence of award of the Arbitration in favour of the assessee, the assessee was able to repossess the equipment and sell the same on as is where is basis. The factual aspect of claim and allowance of depreciation has been held to be in favour of the lessor, by the courts. As the fact that the assessee repossessed the APEC equipment and sell it, goes to prove the genuineness of the transaction and the title of the equipment always lay with the assessee. In these circumstances, we are of the opinion that the assessee was entitled to depreciation. - Decided in favour of assessee.
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