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2015 (3) TMI 1219 - ITAT MUMBAI

2015 (3) TMI 1219 - ITAT MUMBAI - TMI - Penalty u/s.271(1)(c) - disallowance of depreciation in respect of assets given under ‘sale and lease back basis’ - Held that:- As decided in case of ICDS Ltd [2013 (1) TMI 344 - SUPREME COURT] assessee is entitled to claim depreciation in respect of additions made to the assets which were leased out. Thus as addition itself has been deleted by the Tribunal, we do not find any justification in levy of concealment penalty - Decided in favour of assessee - I .....

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enalty on the disallowance of depreciation in respect of assets given under sale and lease back basis . Grounds of appeal in all the appeals are identical and read as under: 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in upholding the penalty u/s.271(1)(c) relating to disallowance of depreciation in respect of assets given under sale and lease back basis . In doing so, the learned Commissioner Appeals disregarded the following: i) The submissions of .....

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cision of Hon ble Supreme Court in the case of ICDS Ltd., vs. CIT, 350 ITR 527 (SC), the assessee has been held to be entitled for depreciation of such assets and earlier order of the Tribunal vide which it was held that such disallowance was right ( order of Tribunal dated 9/5/2012) was rectified. Relevant portion of the said order is reproduced below. 4. We have heard the arguments of both the sides and also perused the relevant material placed on record. It is observed that while disposing of .....

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e is not admissible to the lessor who is simply a nominal and symbolic owner of the asset whereas the real owner who bears all the risks and rewards incidental to the ownership is the lessee. In the judgment delivered subsequently in the case of I.C.D.S. Ltd. (supra), the Hon ble Supreme Court has held that even in the case of finance lease, the lessor is eligible to claim depreciation. As pointed out by the ld. Counsel for the assessee, the said decision of the Hon ble Supreme Court in the case .....

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