COMMISSIONER OF INCOME TAX AND THE DEPUTY COMMISSIONER OF INCOME TAX Vs. AMANATH MOTOR OWNERS CO-OPERATIVE SOCIETY LTD.

JUDGEMENT

(1.) This is an appeal filed by the Revenue against the impugned order dated 30th January 2009 passed in ITA No. 401/Bang/2008 by the Income Tax Appellate Tribunal, Bangalore Bench-A, Bangalore, for consideration of the following substantial questions of law:

(2.) The brief facts of the case are, the assessee has filed returns of income before the Assessing Officer on 31.10.2004 for the assessment year 2004-2005. The Assessing Officer has taken up the same for consideration after issuing notice under Section 143(2). In response to the said notice, the assessee was represented through its representative from time to time and furnished all the information. The Assessing Officer, after analyzing the material available on record, has proceeded to pass the order dated 30th November 2006 vide Annexure-C, holding that assessee is not entitled for depreciation on the total value of the buses. Assailing the correctness of the said order, the assessee had filed an appeal before the First Appellate Authority-the Commissioner of Income Tax (Appeals) II, Bangalore, in appeal ITA No. 167/DC4(1) CIT(A)-II:2006-07 for the assessment year 2004-2005, along with other appeals for the assessment years 2001-2002 and 2002-2003. The First Appellate Authority, after hearing both sides and after going through the order passed by the Assessing Officer and placing reliance on the law laid down by the Apex Court and this Court has allowed the appeals in part holding that the assessee is the factual owner of all the buses, who used them in its business in its own right as the owner and therefore, he is entitled to depreciation and directed the Assessing Officer to allow depreciation while computing the income with regard to all the three assessment years vide Annexure-B dated 26.12.2007. Being aggrieved by the order of the First Appellate Authority, the revenue has filed an appeal before the Income Tax Appellate Tribunal, Bangalore Bench-A, Bangalore, ('Tribunal' for short) in ITA No. 401/BANG/2008 for the Assessment Year 2004-2005 along with other appeals for the assessment years 2001-02 and 2002-03. The said matters came up for consideration before the Tribunal. The Tribunal, in turn, after going through the orders passed by the Assessing Officer and First Appellate Authority and after reassessing the oral and documentary evidence, has dismissed the appeals filed by the revenue vide Annexure-A dated 30th January 2009 by upholding the order passed by the First Appellate Authority. Being aggrieved by the said order passed by the Tribunal, the revenue herein has presented this appeal for the assessment year 2004-2005, raising the aforesaid substantial questions of law along with other reliefs.

(3.) We have heard the learned Counsel for the appellants and learned Counsel for the respondent at considerable length of time.