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Mere Sale & Lease Back cannot lead to conclusion that transaction is sham
Case Law Details
- Case Name
- Commissioner of Income Tax Vs M/s. High Energy Batteries (India) Ltd. (Madras High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Madras High Court
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The assessee had purchased the machinery on 10.03.1995 from M/s.Ponni Sugars and Chemicals Limited, a sister concern of the assessee herein at a cost of Rs.250 lakhs. On the very same day, the assessee is said to have entered into an agreement of lease of the boilers with M/s.Ponni Sugars and Chemicals Limited. The Assessing Authority viewed the sale and lease back arrangement as a camouflaged one and held that the assessee was not entitled to the claim of depreciation. On Appeal it was held that :-
It is no doubt true that the machinery were embedded and were in possession of the seller M/s...
