TMI Blog2020 (4) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... n on assets leased out by it under finance lease and after making enquiry, the said depreciation was allowed by the AO in the Assessment Order and hence, the issue involved in the present year is squarely covered by the Tribunal order in assessee s own case for earlier Assessment Year i.e. 2008-09 in which it was held by the Tribunal that the Assessment Order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue as the finance lease transaction has been thoroughly examined by the AO in the light of evidence filed by the assessee. Revenue could not point out any difference in the facts in that year and in the present year therefore,in the present year also, the Assessment Order is neither erroneous nor preju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the Appellant and setting aside the completed assessment with a direction to the AO to reframe the assessment. without considering the decision of the Hon'ble Supreme Court in the case of M/s ICDS Ltd. Vs. CIT (Civil Appeal No. 3282 of 2008) thereby violating the principles of judicial discipline. 4. Without prejudice to the above, the learned PCIT has erred in law and in fact by questioning the eligibility of Cisco Capital (being the lessor) to claim depreciation under the Act on networking equipments leased out under finance lease arrangement. 5. Without prejudice to the other grounds of appeal, the learned PCIT has erred in law and in fact, by not allowing depreciation on the opening written down value ('WDV') ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available on pages 287 to 289 of the Paper Book and it was pointed out that in the said notice, this was the specific query of the AO that the assessee has to provide breakup of leased amounts under finance lease as well as operating lease and the corresponding contracts and assets and reply to the same was submitted to the AO along with letter dated 07.03.2014 on page No.287 of the Paper Book. Learned DR of the Revenue supported the impugned order of the PCIT passed by him under section 263 of the IT Act, 1961. 4. We have considered the rival submissions. First of all, we reproduce para No.6 of the impugned order of PCIT passed by him under section 263 of the IT Act, 1961 to take note of the objections of the PCIT. This para reads as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PCIT in the said order that AO has wrongly allowed depreciation on assets without appreciating difference in facts in the provisions of section 32 of the IT Act. This para reads as under: 3. Thereafter, the Pr. CIT, Bangalore has issued show cause notice u/s 263 of the IT Act, 1961 dated 05.03.2015 and called upon the assessee to explain as to why the assessment order passed by the A.O u/s 143(3) of the IT Act, 1961 shall not be revised. The Pr.CIT, proposed to revised assessment order u/s 263 of the IT Act, on the ground that the assessment order passed by the A.O is erroneous in so far it is prejudicial to the interest of the Revenue on account of wrong claim of depreciation on leased assets. The Pr. CIT, further stated that the A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment that the assessee is claiming depreciation on assets leased out by it under finance lease and after making enquiry, the said depreciation was allowed by the AO in the Assessment Order and hence, the issue involved in the present year is squarely covered by the Tribunal order in assessee s own case for earlier Assessment Year i.e. 2008-09 in which it was held by the Tribunal that the Assessment Order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue as the finance lease transaction has been thoroughly examined by the AO in the light of evidence filed by the assessee. Learned DR of the Revenue could not point out any difference in the facts in that year and in the present year and therefore, respectfull ..... X X X X Extracts X X X X X X X X Extracts X X X X
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