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2019 (4) TMI 60 - HC - Income TaxBenefit of depreciation on the plant and machinery purchased from vendor by the agreement - consideration for purchase of the plant, machinery etc. was much less than the whole consideration - HELD THAT:- We are of the opinion that the facts of this case have not been properly determined by the adjudicating authority below, on the basis of the said agreement by which the undertaking plant, machinery etc. were purchased by the assessee. If by the said agreement, the consideration for the plant and machinery is shown to be ₹ 4.10 crores and that the assessee was to pay ₹ 4.10 crores as consideration for it, but under an arrangement with the vendor paid a part of it to the vendor and the other part to liquidate the workman’s liability, then it can be clearly demonstrated that the entire consideration was a capital expenditure for acquisition of a capital asset. On the other hand, if it is shown that the consideration for purchase of the plant, machinery etc. was much less than the whole consideration and that payment of the statutory dues of the workman was a distinct consideration forming the other part of the whole consideration, the picture would be completely different and similar to Commissioner of Income Tax, Kolkata versus Hooghly Mills Co. Ltd. [2012 (1) TMI 319 - SUPREME COURT OF INDIA.] For proper application of law, facts are very essential. For those reasons, we remand this matter back to the tribunal to determine this particular question de novo on proper evidence and by a reasoned order within six months of communication of this order.
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