CIT vs. JAGSON INTERNARTIONAL LTD

ITA - 1854 / 2010HC Delhi30 November 20101 pages

For Petitioner: SANJEEV SABHARWAL

AI SummaryRemanded

What did the High Court hold?

The High Court, in its order dated November 30, 2010, acknowledged the Revenue's argument that the matter could have been remitted back to the Assessing Officer (AO) to record a finding on whether the aircraft was put to use. However, the judgment does not explicitly state what the High Court decided on this issue or the ultimate outcome of the appeal. The case was fixed for final disposal on December 8, 2010, indicating that the decision was pending. The core of the dispute revolved around the AO's disallowance of depreciation and the ITAT's subsequent allowance.

What were the facts?

The Assessing Officer (AO) disallowed the assessee's claim for depreciation on an aircraft, stating it was grounded and not in use during the relevant assessment year. The AO also noted the aircraft was leased out, and lease rentals were not charged, with a moratorium granted. The Income Tax Appellate Tribunal (ITAT) allowed depreciation, finding no specific finding from the AO that the aircraft was not used for the entire year. The Revenue appealed this decision to the High Court, arguing the matter should have been remitted back to the AO for a finding on usage.

What were the issues?

1. Whether the High Court should remit the matter back to the Assessing Officer to record a finding on whether the aircraft was put to use during the relevant assessment year, as argued by the Revenue. The Revenue contended that the ITAT erred in allowing depreciation without a clear finding from the AO on the aircraft's usage. The assessee, represented by Mr. Ravi Pratap Mall, accepted notice. The High Court noted that a short question was involved.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 30.11.2010 . Present: Mr. Sanjeev Sabharwal, Adv. for the Revenue. Mr. Ravi Pratap Mall, Adv. for the assessee. . +ITA No.1854/2010 . The claim of the assessee for depreciation on the aircraft was disallowed by the Assessing Officer (AO) on the ground that the said aircraft was grounded in the relevant assessment year and was not put to use. Therefore, there is no question of allowing any depreciation thereupon. In the process, the AO also noted that the assessee had given the said aircraft on lease and even the lease rental was not charged and the assessee had granted moratorium in respect thereof. The Income Tax Appellate Tribunal has allowed the depreciation, inter alia, observing that there was no finding of the AO that during the entire year, the aircraft was not put to use. In these circumstances, it is the argument of the learned counsel for the Revenue that the matter could have been remitted back to the AO to record the finding thereupon. Notice. Mr. Ravi Pratap Mall, learned counsel accepts notice for the assessee. Since short question is involved in this appeal, we fix the case for final disposal on 08th December, 2010 at the end of ?After Notice Misc. Matters?. A.K. SIKRI, J. . SURESH KAIT, J. NOVEMBER 30, 2010 pmc . R-13 and 14 . .

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