Section 234B

Last updated: 10 November 2008

Court :
High Court

Brief :
I. Section 246, read with section 234B, of the Income-tax Act, 1961 - Commissioner (Appeals) - Appealable orders - Assessment year 1995-96 - Whether when chargeability of interest under section 234B itself is challenged, then same is appealable - Held, yes II. Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Assessment year 1995-96 - Assessee-banking corporation had claimed depreciation on certain assets - Authorities below noted that assessee had purchased those assets from two electricity boards and then leased them back to said boards - Accordingly, it was opined that assessee was not entitled to any depreciation under section 32, as assets were not owned by it but were for purpose of security against loan given to parties in course of financing transactions - On appeal, it was noted that assessee was in regular leasing business and thousands of transactions had been entered into by it with various parties for sale and lease back transactions - However, not a single transaction was pointed out by authorities below that was not genuine or was only paper transaction - Moreover, in respect of assets-in-question, any liability on account of insurance premium or theft, damage, etc., was on assessee - Whether, on facts, authorities below were not justified in doubting transactions entered into by assessee merely on basis of suspicion or conjectures - Held, yes - Whether, therefore, Assessing Officer was to be directed to allow claim of depreciation on all items claimed by assessee - Held, yes

Citation :
ICICI Ltd. v. Joint Commissioner of Income-tax - [2008] 115 ITD 25 (MUM