TMI Blog2018 (7) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Co. Ltd. vs. Commissioner of Income-tax, W.B.-I, Kolkata (2012 (10) TMI 896 - CALCUTTA HIGH COURT) a Division Bench judgment of our Court. This pertained to the assessment year 1993-94 of the assessee. Relying on paragraph 10 of the judgment he submitted that the assessee had not been able to substantiate that the lease was for more than 12 years. That is not the case. Mr. Chatterjee pointed out that the paragraph in question was a continuation of the submission on behalf of the assessee recorded by the Court and should not be taken to be its finding. Mr. Chatterjee is absolutely right though we confess that at least one sentence in the paragraph has been worded in such a way so as to create a doubt that it is the submission of a par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 428 of 2007, ITA No. 429 of 2007 - - - Dated:- 11-7-2018 - I. P. MUKERJI AND AMRITA SINHA, JJ. For the Petitioner : Mr. Abhijit Chatterjee, Sr. Adv. Mr. Gopal Ram Sharma, Adv. For the Respondent : Md. Nizamuddin, Adv. ORDER The Court: After hearing learned Counsel for the parties we propose to dispose of both these appeals under Section 260A of the Income Tax Act, 1961 by this common judgment and order: Two questions of law are common in both the appeals. They are as follows: (a) Whether on the facts and in the circumstances of the case, the building held on long term lease for 99 years and used admittedly for the purpose of business is eligible for depreciation allowance under Section 32, the long term lease ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of buildings, machinery, plant etc. owned wholly or partly by the assessee. Explanation 1 to the section clarifies that where the business or profession of the assesee is carried on in a building not owned by him but of which the assessee holds a lease then he would be able to avail of the deductions on account of depreciation only if some capital expenditure was incurred by him in that building. Mr. Chatterjee, learned senior Advocate appearing for the assessee has been able to convince the Court that on a combined reading of Section 269UA(f), defines transfer together with a Section 27(iiib) of the said Act a lessee of a building or plant with a lease of 12 years, as the assessee claims to be, in which business is carried out, woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a finding by the Court. The second issue relates to the deduction and expenditure claimed by the assessee made by the Assessing Officer on the ground that such expenses were on account of income which was exempt from taxation and hence could not be claimed as an allowable expense. It appears that the Tribunal had as a thumb rule deducted 10% of the expenses as attributable to earning exempt income. Mr. Nizamuddin also submitted that the actual expenses may have been much more but the Tribunal had taken 1% as a kind of normal deduction to be made. Mr. Chatterjee submitted that the Tribunal was expected to allow deduction which had been actually determined by the Department and not on a random basis. We share this view. The vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
