Case No: Civil Appeal No. 955 of 2009)
MCorp Global Pvt. Ltd. Appellant(s) versus Commissioner of Income-tax, Ghaziabad Respondent(s)
Date of Decision(mm/dd/yy): 2/12/2009.
Judge(s): Hon'ble Mr. Justice S.H. Kapadia and Hon'ble Mr. Justice H.L. Dattu.
Subject Index: Income Tax Act, 1961 — section 32(1)(ii) — depreciation under — by the impugned judgment, confirming the decision of the Tribunal, the High Court has held that the appellant (assessee) is not entitled to claim depreciation under Section 32(1)(ii) of the Income-tax Act, 1961 in respect of two separate transactions dated 15.2.1991 and 15.3.1991. The impugned judgment has been rendered in respect of Assessment Year 1991-92 — the assessee had earned total income of Rs. 6,33,596/- over a period of 36 months commencing from 15.3.1991 to 14.3.1994. Therefore, the matter should be remitted for recalculation — the concurrent finding shows that transaction dated 15.3.1991 is a sham. The finding shows that the transaction had not been proved by the assessee. In the circumstances, there is no question of the matter being remitted, as prayed for. Consequently, the AO was right in coming to the conclusion that transaction dated 15.3.1991 was not proved and that the assessee was not entitled to claim depreciation of Rs. 30,17,122/- in respect of the second transaction — this Court deletes the disallowance of depreciation of Rs. 18,04,572/- under the First Transaction but it disallows the depreciation of Rs. 30,17,122/- under the Second Transaction.