Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961 :Depreciation - claim for - In respect of two lease transactions by the assessee- In respect of first transaction initially partly denied by AO but on remission of the matter assessee held to be 100% entitled- Order of AO on remission not cha/- Jenged - The order of AO denying depreciation confirmed by Tribunal and High Court - In respect of second transactions, depreciation denied by AO and the appellate court~ holding the same to be a sham- On appeal, held: Denial of depreciation in respect of first transaction not correct - Tribunal has no power to enhance the assessment- The order of AO after remand granting depreciation also attained finality - Second transaction since not proved and since held to be a sham, denial of depreciation, correct. Assessing Officer disallowed claim of the assessee a lessor of soft drink bottles, for depreciation, in respect of two transactions i.e. regarding lease dated 15.2.1991 and regarding lease dated 15.3.1991. In respect of first transaction, as regards lease of 5,46,000 bottles, depreciation was allowed by AO only in respect of 42,000 bottles having been received prior to 31.3.1999 i.e. ttie relevant period. The depreciation claim of assessee was also disallowed by Income Tax Appel late Tribunal and by High Court. During pendency of the appeal before Tribunal, the case having been remanded by CIT(A), the AO held that the assessee was entitled to 100% depreciation. That findir;g of AO has not been challenged so far. In respect of the second transaction, AO denied depreciation, holding that the lease deed was not proved and in fact it was a sham. The said finding was accepted by the Tribunal and the High Court. Hence, the present appeal in respect of both the transactions. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2009 INSC 161 |
Petitioner | Mcorp Global Pvt. Ltd. |
Respondent | Commissioner Of Income-tax, Ghaziabad |
SCR | [2009] 2 S.C.R. 213 |
Judgement Date | 2009-02-12 |
Case Number | 955 |
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