COMMISSIONER OF INCOME TAX Vs. ESSAN INVESTMENTS LIMITED

JUDGEMENT

(1.) THE two questions referred to us concerning the assessment year 1983-84 under the Income-tax Act, 1961, are required to be, and is answered in favour of the assessee and against the Revenue in the light of the decision of the Supreme Court in the case of CIT v. Shaan Finance (P.) Ltd. [1998] 231 ITR 308. THE assessee is admittedly engaged in the business of leasing of earth-moving equipment. THE fact that such earth-moving equipment was utilised in industrial activity was not in dispute. As held by the apex court, it is not necessary in order to claim this allowance, that the assessee himself should be engaged in the manufacture. THE fact that the machinery owned by the assessee is leased to manufacturers and used for manufacture is sufficient.

(2.) THE reference is, therefore, answered in favour of the assessee and against the Revenue.