M/s. Avasarala Technologies Ltd. v. The Joint Commissioner of Income Tax, Special Range-1, Bangalore

November 26, 2021

Civil Appeal No. 2996 of 2004

Constitution of India — Art. 132 — Appeal — Question of law — Pure findings of facts recorded by authorities — Appellant/assessee claimed depreciation on purchase of machinery — Findings facts recorded by authorities that transaction in question is sham — Appeal dismissed considering that no questi on of law arises (Para 2)

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(A.K. Sikri and Rohinton Fali Nariman, JJ.)

M/s. Avasarala Technologies Ltd. _________________________ Appellant

The Joint Commissioner of Income Tax, Special Range-1, Bangalore ____ Respondent

Civil Appeal No. 2996 of 2004, decided on March 30, 2015

The Order of the court was delivered by

Order

The appellant-assessee herein claimed depreciation on certain machinery allegedly purchased from Andhra Pradesh State Electricity Board (hereinafter referred to as ‘APSEB’ for short) vide sale deed dated 29.09.1995 which, as per the appellant, was given to the APSEB itself on lease.

All the authorities below have found, as a fact, that there was no such purchase of machinery and the transaction in question is sham. On that basis, it was concluded that since the machinery was not purchased by the appellant, it never became the owner of the machinery and therefore, could not claim any depreciation thereof. These are pure findings of facts recorded by the authorities below. No question of law arises. The appeal is, accordingly, dismissed.

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