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2009 (11) TMI 2 - HC - Income TaxHigher depreciation on workers’ quarters – investment allowance on plant and machinery leased out to another concern – held that - the workers’ quarters were let out as a part of the plant and income so derived was assessed as business income. The claim for depreciation, thus, had nexus with the business of the assessee. There is, thus, no error in the view taken by the CIT(A) and the Tribunal. The question is answered against the revenue and in favour of the assessee - once three conditions of owning a machinery, use for the purpose of business of the assessee and the nature of machinery being of the specified category are fulfilled, Section 32A will be attracted - Where business of the assessee is of leasing, even according to the learned counsel for the revenue there will be no difficulty in view of judgment in Shaan Finance. Where the income so derived is assessed as business income, in our view, the same principle will apply - Accordingly, the questions referred are answered against the revenue and in favour of the assessee
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