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2018 (5) TMI 39 - AT - Income TaxDisallowance on depreciation on leased transactions - CIT(A) held that the depreciations claim over the assets which were purchased from third parties by the assessee company and entered into sale and lease back agreement with different parties are eligible to claim depreciation and directed AO to verify each such claim and by satisfaction that the supplier and lessee should not be one at the same time. Held that:- In our considered view this direction of the Ld.CIT(A) will not serve any purpose as the Assessing officer in this case though set-aside to him twice to examine the transaction in detail he miserably failed to examine the transactions and therefore there is no point again directing the Assessing Officer to examine the transactions or part of the transactions for the purpose of allowing the claim of the assessee. Therefore, to that extent the observations of the Ld.CIT(A) are reversed and we confirm the order of the Ld. CIT(A) in holding that assessee is eligible to claim depreciation from sale and lease back assets in respect of the transactions other than Nath Pulp & Paper Mills Ltd. To put an end to the litigation in this case as the matter is very old and relates to the A.Ys. 1996-97, we sustain the order of the CIT(A) partly as indicated above and the claim of the assessee is directed to be allowed as per the observations of the Ld.CIT(A) without any further verification by the Assessing Officer.
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