N. JAGADEESAN Vs. ASSISTANT COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This Tax Case (Appeal), filed at the instance of the assessee as against the order of the Income Tax Appellate Tribunal relating to the assessment year 1995-96, was admitted by this Court on the following substantial questions of law:

(2.) Whether on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the depreciation loss or share thereof cannot be set off against the income of the appellant?"

(3.) It is evident from the agreement, which is narrated in the order of the Commissioner of Income Tax (Appeals), that the parties to the agreement agreed to arrange for finance to the project by obtaining loans from banks and other institutions and the parties had authorised the assessee to approach any government or institution for that purpose on their behalf and thus executed necessary power of attorney in favour of the assessee for that purpose. In terms of the agreement thus reached, wind mill was commissioned on 30.09.1994. All the members mentioned above availed loan of Rs.45 lakhs from the Tamilnad Mercantile Bank, Theni for the project. The assessee had utilized Rs.50 lakhs for this project out of Rs.1 Crore loan availed by him from ICICI Bank.