Mere Sale & Lease Back cannot lead to conclusion that transaction is sham

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...