- (1.) The assessee is on appeal as against the order of the Tribunal. The assessment year under consideration is 1996, 97. Following are the questions of law raised for consideration in the above Tax Case (Appeal):- "1. Whether the Tribunal was right in disallowing depreciation on sale and lease back contracts and lease contracts with regard to five companies when the requirements of Section 32 (1) had been satisfied 2. Whether the Tribunal was justified in disallowing depreciation with regard to these contracts on grounds that the supplier of the material was not traceable or for other technical reasons ignoring the facts that clearly indicate that requirements of Section 32 had been satisfied and 3. Whether the Tribunal was right in holding that the valuation of assets is leased in the case of M/s. Sanghi Textiles Ltd. M/s.Enterprising Enterprises and M/s. Patheja Forgings & Auto Parts Mfg. Ltd. are not justifiable -
(2.) The assessee herein is a company engaged in leasing and financing. A reading of the order of the authorities below shows that there were two types of transactions; one is relating to sale and lease back transaction and other one is relating to lease transactions. As far as the sale and lease back transactions and direct lease are concerned, following are the details as found in the order of assessment as well as in the lower court authorities order.:- SALE AND LEASE BACK TRANSACTION (1) Sanghi Textiles Liited DIRECT LEASE TRANSACTION (1) MID, EAST INTEGRATED STEEL LIMITED (2) VICTORY GLASS AND INDUSTRIES LIMITED (3) H.K. DATAREX LIMITED (4) SITAPUR PLYWOOD LIMITED (5) GSL INDIA LIMITED
(3.) The lease transactions were entered into by the assessee with the lessees in respect of the machineries supplied by the third parties. The details of which are as follows:- JUDGEMENT_440_LAWS(MAD)9_2012_1.html;