Principal Commissioner Of Income Tax 2 v. Gujarat Lease Financing Ltd

IN THE HIGH COURT OF GUJARAT AT AHMEDABADR/TAX APPEAL NO. 1030 of 2018 ========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 2 VersusGUJARAT LEASE FINANCING LTD ========================================================== Appearance: MR MR BHATT, SENIOR ADVOCATE with MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIand HONOURABLE MR.JUSTICE B.N. KARIA Date : 13/08/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. For the assessment year 2005-06 the Revenue has filed this appeal raising following questions for our consideration. “(A) Whether the Appellate Tribunal has erred in allowing the bad debt claim of the assessee ignoring the fact that the debts in question were not trading debts of the assessee as required u/s.36(1)(viii) of the Act ? (B) Whether the Appellate Tribunal ignored the fact that the assessee has debited the principal amount which could never appear as a debt on account of trade? (C) Whether the Appellate Tribunal has erred in treating the hire purchases as stock in trade ? (D) Whether the Appellate Tribunal has failed to consider that the assessee is not a banking entity where bill discounting can be accepted to be trading receipt and the resultant debt be treated as bad trading debt ? discounting can be accepted to be trading receipt and the resultant debt be treated as bad trading debt ? (E) Whether the Appellate Tribunal has substantially erred in deleting the disallowance of depreciation amounting to Rs.925304/- on leased assets ?” disallowance of depreciation amounting to Rs.925304/- on leased assets ?” 2. Question (A) to (D) are with respect to the assessee’s claim of bad debt. Such questions assessee’s claim of bad debt. Such questions have been considered in Tax Appeal No.1024 of 2018 involving this very assesse by a separate order passed today. Likewise question (E) which pertains to the assessee’s claim of appreciation on leased asset is considered in Tax Appeal No.1023 of 2018. Without recording separate reasons, this appeal is also dismissed. (AKIL KURESHI, J) K.K. SAIYED (B.N. KARIA, J)