VACHANBAND INVESTMENT LTD. Vs. ITO

JUDGEMENT

(1.) THIS is an appeal by assessed against the order of Commissioner (Appeals) relating to assessment year 1991 -92. The assessed has challenged the reopening of assessment under section 147 and also challenged the disallowance of hundred per cent depreciation claimed on bottles leased out to Mansarover Bottling Co. ITD.

(2.) THE brief facts of the case are that a search was conducted on assessed on 9 -3 -1999 and on the basis of material found during the course of search, notice under section 148 was issued on 22 -3 -2001. The block assessment was also completed on 30 -4 -2001, for the block period from 1 -4 -1989 to 9 -3 -1999. During the course of search the statement of Shri Nitin Kohli was recorded, who has stated that some financial arrangements were entered into between the assessed - company and Mansarover Bottling Co. ITD. From the assessment records the assessing officer noted that return declaring an income of Rs. 93,590 was filed on 31 -3 -1993. It was processed under section 143(1)(a). Main business of the company comprised of sale and purchase of shares. Apart from this, the assessed had allegedly leased empty soft drinks (Limca) glass bottles and certain other plant and machinery to Mansarover Bottling Co. ITD. and claimed depreciation at 100 per cent and 33.33 per cent respectively, as per details below:

(3.) THE assessed preferred appeal before the Commissioner (Appeals). The Commissioner (Appeals) also confirmed the reopening of assessment as well as withdrawal of depreciation and adding the interest income on accrual basis. Now the assessed is in appeal here before the Tribunal.