TMI Blog2014 (12) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside the orders of Ld CIT(A) in this year and restore the same to the file of the assessing officer with the direction to decide the issue afresh in the light of discussions made by the Tribunal in AY 1994-95 to 1997-98. MAT Computation - addition of Provision for Non-Performing Assets while computing the book profit u/s 115JB - assessing officer added the same by treating as unascertained liability - HELD THAT:- We notice that the Finance Act 2009 has made amendment in sec. 115JB of the Act with retrospective effect from 1.4.2001 by inserting the following item to be added to the book profit:- (i) the amount or amounts set aside as provision for diminution in the value of any asset. Hence, the provision for non-performing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has allowed the claim of depreciation on leased assets by following the decision of Hon ble Supreme Court in the case of ICDS Limited [ 2013 (1) TMI 344 - SUPREME COURT] There should not be any dispute that the assessee is entitled to depreciation, if it has leased out the assets under operating lease. AO had taken the view that the lease transactions entered into by the assessee were not genuine lease transactions. CIT(A) has come to the conclusion that the lease transactions were genuine in nature and he held so by placing reliance on the decision rendered in the preceding years. It was submitted that the lease transactions has been accepted by the Tribunal in the earlier years and accordingly depreciation was allowed. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s hand in ITA No.1583/Mum/2011 relating to assessment year 1998-99. We notice that the Tribunal, in the above said assessment year, has followed the decision rendered by the co-ordinate bench in the assessee s own case relating to assessment years 1994-95 to 1997-98 in ITA No.2308, 2307, 2309 2310/Mum/2011. We have gone through the order passed by the Tribunal for AY 1998-99, wherein the Tribunal has extracted the observations made by the co-ordinate bench in the order passed for AY 1994-95 to 1997-98, wherein the Tribunal has explained the concept of Lease equalization charge and accordingly restored the matter back to the file of the assessing officer for carrying out fresh examination. Consistent with the view taken by the Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in trade and the assessee is valuing the stock at Cost or market value whichever is lower . The Ld A.R submitted that the market value of securities fluctuate every year and hence the assessee has followed the system of making provision every year, instead of writing off the loss arising on account of fall in the market value of securities below the cost. However, we notice that the claim of the assessee that the securities are forming part of stock in trade has not been examined by the tax authorities. Further the claim of the assessee that it was following the system of valuing the securities under the principle, viz., cost or market value whichever is lower also requires examination at the end of the assessing officer. Accordingly, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nate bench of Tribunal has allowed the claim of depreciation on leased assets by following the decision of Hon ble Supreme Court in the case of ICDS Limited (29 Taxman.com 129). There should not be any dispute that the assessee is entitled to depreciation, if it has leased out the assets under operating lease. The AO had taken the view that the lease transactions entered into by the assessee were not genuine lease transactions. However, the Ld CIT(A) has come to the conclusion that the lease transactions were genuine in nature and he held so by placing reliance on the decision rendered in the preceding years. It was submitted that the lease transactions has been accepted by the Tribunal in the earlier years and accordingly depreciation was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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