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2014 (6) TMI 1028 - HC - Income TaxDepreciation on leased assets - ownership on machinery - HELD THAT:- In the instant case admittedly, the machinery is owned by the assessee. The assessee had leased that machinery to its customers. That is the business the assessee is carrying on and therefore, the judgment of the Apex Court [2013 (1) TMI 344 - SUPREME COURT] reversing the judgment of this Court in M/s ICDS Limited equally applies to the facts of this case and therefore, the order passed by the tribunal disallowing the depreciation claimed is liable to be set-aside. Disallowance of lease equalization reserve - HELD THAT:- The previous year involved in the case is 31.3.1998 and the assessment year is from 1.4.1998 to 31.3.1999. In order to over come such claim, by Finance Act No.2/2009 which came into effect from 1.4.1998 clause (g) was substituted to explanation to Section 115JA of the Act. This Court had an occasion to consider the said question in the case of THE COMMISSIONER OF INCOME TAX vs WEIZMANN HOMES LTD. [2013 (5) TMI 123 - KARNATAKA HIGH COURT] wherein as held said amount has not been included in the book profit. It was unascertained liability. Even this amount is earmarked as provision for diminution in the value of any asset for the purpose of arriving at the book profit for the purpose of Section 115JA which ought to have been included. The Assessing Authority was justified in adding the said amount to the book profit. Both the Appellate Authorities committed a serious error in deleting the said amount. It is contrary to the statutory provision. That portion of the order of Tribunal requires to be set aside and accordingly it is hereby set aside and the substantial question of law is answered in favour of Revenue and against the assessee.
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