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2019 (3) TMI 140 - HC - Income TaxDepreciation on windmill denied - sham transaction - proof of ownership - assessment u/s 143(3) - AO disbelieved the transaction to be one of purchase of 80% shares in the windmill and held that the transaction is only a finance transaction - tribunal allowed depreciation - HELD THAT:- Tribunal has analysed the entire transactions in great depth to confirm the order passed by the CIT(A), had analysed the business prudence and found that no businessman doing finance would lend money to earn such a low interest even assuming that the assessee is able to get the benefit of depreciation at 100% which would result in reduction of the income of the assessee in the present case over a period of two years by ₹ 8.10 Crores. Tribunal observed that it would be of no benefit to the assessee, insofar as when the windmill is sold at any point of time the windmill will be depreciated asset and the income would be taxable as a short term capital gain due to the applicability of Section 50. The Tribunal noted that the existence of the windmill was not disputed by the Revenue and the payment by M/s.Surana Industries Ltd., to the assessee in regard to the quantum and the method of computation of quantum was also not disputed. Further, it analysed every attendant facts and circumstances, and rejected the stand taken by the Assessing Officer that the transaction was a 'sham transaction' - no substantial question of law.
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