COMMISSIONER OF INCOME-TAX Vs. UTI BANK LTD.

JUDGEMENT

(1.) THE appellant -Revenue has proposed the following question: Whether the Appellate Tribunal is right in law and on facts in confirming the order of the Commissioner of Income -tax (Appeals) in deleting the disallowance of depreciation of Rs. 1,18,10/500 made on account of excess depreciation?

(2.) HEARD learned Counsel for the appellant -Revenue. She has reiterated the observations made by the Assessing Officer for the assessment year. However, learned standing Counsel could not point out as to how the facts in the present case are different from the facts noted by this court in the case of CIT v. Pinnacle Finance Ltd. : [2004] 268 ITR 395 where the High Court has followed the apex court's decision in the case of CIT v. Shaan Finance P. Ltd. : [1998] 231 ITR 308.

(3.) IN the case of CIT v. Pinnacle Finance Ltd. : [2004] 268 ITR 395 this court has considered the ratio of the apex court's decision in the following words (page 397): It is further held by the apex court that where the business of the assessee consists of hiring out machinery and/or where the income derived by the assessee from the hiring of such machinery is business income, the assessee must be considered as having used the machinery for the purpose of its business.