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2005 (6) TMI 18 - HC - Income Tax"(i) Whether Tribunal was right in directing AO to disallow the entire claim of depreciation if the facts are found that the scaffolding materials at the time of termination of lease is not recovered? (ii) Whether the Tribunal was right in law in exercising jurisdiction which results in enhancement of the assessment on the appellant when the Tribunal has no jurisdiction? (iii) Whether the Tribunal was right in holding that the depreciation on scaffolding material is not to be allowed at the rate of 100 %.?" - Tribunal went off on a tangent by observing that the facts need to be verified by the Assessing Officer as to whether the scaffolding materials have been really leased out or have been sold. In fact, it was nobody's case before any of the authorities that there was any disguised sale of scaffolding materials. A perusal of the entire record shows that the only dispute before the authorities related to the rate of depreciation i.e., as to whether it was 33 1/3 per cent, or 100 per cent. The Tribunal had not even put the assessee on notice about the above observation at the time of hearing, and no opportunity was given to the assessee about the point raised suo motu by the Tribunal. In, view of the above, we set aside the impugned order of the Tribunal and hold that the scaffolding materials are entitled to 100 per cent, depreciation treating the transaction as a lease. The appeal is allowed
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