TMI Blog2018 (12) TMI 1521X X X X Extracts X X X X X X X X Extracts X X X X ..... endeavour to appreciate the documents examining the effect of Accounting Standard 19 as projected by the assessee. Therefore, the matter has to be decided afresh by the Tribunal by examining the documents, effect of Accounting Standard 19 as pointed out by the assessee and then take a decision on merits and in accordance with law. As we are convinced that the Tribunal did not undertake any exercise to examine the factual aspect, we are well justified in interfering with the order passed by the Tribunal and remanding the matter for fresh consideration. Having come to such a conclusion, there would be no necessity of answering the Substantial Questions framed for consideration. The appeals are allowed; the order passed by the Tribunal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s return was filed on 29.10.2007 returning an income of ₹ 64,73,426/-. The return was taken up for scrutiny by issue of notice under Section 143(2) of the Act. The assessee participated in the assessment proceedings, details were called for and books of accounts and other records were produced. The assessment was completed under Section 143(3) of the Act. 4. Subsequently, assessment was re-opened by issue of a notice under Section 148 of the Act. The assessee objected to the reopening by filing their objections. One of the issues which was subject matter of the assessment proceedings was, with regard to the lease rental payments for containers. The assssee claimed that the whole of lease rental as revenue expenditure. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant material available on record. The assessee claims that the containers were taken as lease. A copy of the agreement available at paper-book shows that it is a lease-cum-purchase containers. It is not clear from the agreement whether it is a finance lease or operating lease. The fact remains that the assessee treated the containers as capital asset and alternatively claimed depreciation also. The alternative claim of depreciation was allowed by the Assessing Officer. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. 7 . We have heard Mr.R.Sankara Narayanan, learned Senior Counsel for Mr.N.P.Vijay Kumar, learned counsel for the assessee and M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred to by the learned Senior Counsel to emphasize as regards the ownership rights. 11.Ms.V.Pushpa, the learned Counsel for the Revenue referred to the rate schedule and in particular Clause B, which states that the term of the agreement shall be 5 years commencing on the day of pick-up by the lessee and expires on 14.08.2006. The learned counsel also referred to the other conditions contained in paragraph IV(C) which deals with casualty and paragraph E, which deals with Security Interest. Thus, the interpretation given by the assessee and the revenue wholly revolves around the interpretation of terms and conditions of lease agreement. Parallelly, what is to be borne in mind is the stand taken by the assessee that they are bound under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments examining the effect of Accounting Standard 19 as projected by the assessee. Therefore, we are of the considered view that the matter has to be decided afresh by the Tribunal by examining the documents, effect of Accounting Standard 19 as pointed out by the assessee and then take a decision on merits and in accordance with law. 14. As we are convinced that the Tribunal did not undertake any exercise to examine the factual aspect, we are well justified in interfering with the order passed by the Tribunal and remanding the matter for fresh consideration. Having come to such a conclusion, there would be no necessity of answering the Substantial Questions framed for consideration. 15. In the result, the appeals are allowed; the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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