TMI Blog2014 (5) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were not considered by the Assessing Officer. According to the learned authorised representative the assessee has leased out building and plant and machinery during the year relevant to the assessment year 2004-05. However, the assessment order is silent about the receipt of rental income. It is seen that the Assessing Officer has disallowed the depreciation only for the reason that the assessee did not carry on any manufacturing activity and hence the assets were not put to use. If the assessee has let out the building and plant and machinery together, then the decision rendered by this Bench of the Tribunal in the assessee's own case for the assessment year 2005-06 is applicable to this year. However, as stated earlier, the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the re-assessment proceedings, the Assessing Officer disallowed the claim of depreciation made by the assessee by following the decision of the hon'ble Calcutta High Court in the case of CIT v. Oriental Coal Co. Ltd. [1994] 206 ITR 682 (Cal). The Assessing Officer also placed reliance on the following case law : (a) Hindustan Chemical Works Ltd. v. CIT [1980] 124 ITR 561 (Cal) ; (b) Hyderabad Construction Co. Ltd. v. CIT [1981] 129 ITR 81 (AP) ; (c) CIT v. Jiwaji Rao Sugar Co. Ltd. [1969] 71 ITR 319 (MP) ; and (d) CIT v. J. K. Transport [1998] 231 ITR 798 (MP) . 5. In the assessment years 2007-08 and 2009-10, the assessee has claimed before the Assessing Officer that it has leased out building on rent to a company named M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was further submitted that the assessee received lease rental income on letting out of plant and machinery in that year and the Tribunal has taken the view that the said rental income received by the assessee is assessable under the head Income from other sources and the assessee is eligible to claim depreciation under section 57(ii) of the Act. 8. The learned Departmental representative pointed out that the assessee herein has let out only the building during the years relevant to the assessment years 2007-08 and 2009-10 and hence the Assessing Officer has assessed the rental income under the head Income from house property and accordingly denied the depreciation benefits. The learned authorised representative also fairly conceded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is having lease rental agreements, the learned authorised representative submitted that there is no agreement, but submitted that his claim can be verified by examining the bills raised by the assessee. The learned Departmental representative submitted that the new claim put forth by the learned authorised representative requires verification at the end of the Assessing Officer. 11. We find force in the contentions of the learned Departmental representative. Admittedly, the assessee is submitting certain facts which were not considered by the Assessing Officer. According to the learned authorised representative the assessee has leased out building and plant and machinery during the year relevant to the assessment year 2004-05. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
