TMI Blog2012 (12) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... has not denied that it did not allow such deduction for the previous years and subsequent year of assessment year in question. AO has disallowed the deduction only for the A.Y 1997-98. Following the decision in case of S. A. BUILDERS LTD. (2006 (12) TMI 82 - SUPREME COURT) appeal decides in favour of assessee - ITA No.5024/2011 - - - Dated:- 14-9-2012 - K. Bhakthavatsala and B. Sreenivase Gowda, JJ. Appellants Rep by: Shri A. S. Kularni Ganesh R Ghale, Advs. Respondent Rep by: Y.V. Raviraj, Adv. JUDGEMENT This is an Appeal filed under Section 260A of the Income Tax Act, 1961 by the assessee challenging the order dated 16.3.2010 made in ITA No.87/CIT(A)HBL/06-07 on the file of Commissioner of Income Tax (Appeals) ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant submitted that the Assessee took Compressors and Excavators by entering a lease agreement with M/s. Murudeshwar Finance Leasing Ltd. and the machinaries were utilised for the purpose of its business and paid a sum of Rs.11,74,800/- towards lease rentals to the Lessor and also claimed deduction for the assessment year 1997-98, but the deduction was disallowed on the ground that the machinery would become the property of the Lessee at the end of the lease period though there is no contract to that effect and ownership of the machinery remains with the Lessor. He further submitted that after the expiry of the lease, the machineries were delivered back to the Lessor, but the Assessing Officer has erroneously come to the conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. There is no material placed on record to show that the transaction is that of hire purchase and not lease agreement. It is the case of the Assessee that the Compressors and Excavators were utilised for the purpose of business of the appellant and there is not a scintilla of material placed on record to suspect genuiness of the transaction. The Revenue has not denied that it did not allow such deduction for the previous years and subsequent year of assessment year in question. The Assessing officer has disallowed the deduction only for the assessment year 1997-98. The decision reported in (2007) 288 ITR 1 (SC) cited by the learned Counsel for the appellant/assessee is applicable on all the fours to the case on hand and also supports the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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