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

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 1027 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 2003-04 Revenue has filed this appeal raising following questions for our consideration. 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 asseessee 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 ? Whether the Appellate Tribunal has (D) 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 ? (E) Whether the Appellate Tribunal has substantially erred in deleting the disallowance of depreciation amounting to Rs.925304/- on leased assets ?” 2.Questions No.(A) to (D) pertain to the assessee’s claim of bad debt under Section 36(1)(viii) of the Income-tax Act, 1961. Such questions were considered but declined in a separate order passed today in case of this very assessee in Tax Appeal No.1024 of 2018. Without recording reasons again, these questions are not considered. 3.Question (E) pertains to assessee’s claim of depreciation on leased assets. Such a question was considered in assessee’s Tax Appeal No.1023 of 2018 and rejected by an order passed today. Appeal No.1023 of 2018 and rejected by an order passed today. 4. In the result, tax appeal is dismissed. (AKIL KURESHI, J) K.K. SAIYED (B.N. KARIA, J)