M/s. Magma Leasing Ltd. v. Commissioner of Income-tax, W.B., Kolkata
[Citation -2015-LL-0202-32]

Citation 2015-LL-0202-32
Appellant Name M/s. Magma Leasing Ltd.
Respondent Name Commissioner of Income-tax, W.B., Kolkata
Court HIGH COURT OF CALCUTTA
Relevant Act Income-tax
Date of Order 02/02/2015
Judgment View Judgment
Keyword Tags fresh assessment • plant
Bot Summary: Mr.Ananda Sen, Mr.Biswajit Mal,advocates For appellant Md.Nizamuddin,advocate for respondent The Court : The appeal is directed against a judgment and order dated 28th November, 2002 by which the learned Income Tax 2 Appellate Tribunal dismissed an appeal preferred by the assessee. The assessee contended that the Bio-gas Pilot Plant was purchased from Western Paques Ltd. and leased back to it for a period of five years. The report was received by the assessing officer disclosing, inter alia, that the alleged transaction of purchase and leasing back was a sham transaction. Survey had been conducted under Section 133A and the alleged lessee was unable to provide any particulars of the alleged lease transaction. The alleged lessee also admitted that the information provided by the assessee was inaccurate. The alleged lessee also admitted that the plants were not in existence. The assessing officer after hearing the assessee opined that the alleged sale and alleged lease was a device adopted for the purpose of securing tax benefits whereas the transaction was really a 3 transaction of money lent and advanced.


ORDER SHEET ITA NO.107 OF 2003 IN HIGH COURT AT CALCUTTA Special Jurisdiction(Income Tax) ORIGINAL SIDE M/S. MAGMA LEASING LTD. Versus COMMISSIONER OF INCOME TAX, W.B., KOLKATA BEFORE: Hon'ble JUSTICE GIRISH CHANDRA GUPTA Hon'ble JUSTICE ARINDAM SINHA Date : 2nd February, 2015. Mr.Ananda Sen, Mr.Biswajit Mal,advocates For appellant Md.Nizamuddin,advocate for respondent Court : appeal is directed against judgment and order dated 28th November, 2002 by which learned Income Tax 2 Appellate Tribunal dismissed appeal preferred by assessee. facts and circumstances of case briefly stated are as follows; Assessment for year 1993-94 was completed under Section 143(3) of Income Tax Act allowing depreciation on Bio-gas Pilot Plant. assessment was sought to be reopened on basis of reports received by assessing officer that Bio-gas Pilot Plant was not in existence. Notice was issued. assessee contended that Bio-gas Pilot Plant (hereinafter referred to as plant) was purchased from Western Paques (I) Ltd. and leased back to it for period of five years. It was alleged that plant was installed at Rajaram Bapu Shakhari Sakhar Karkhana Ltd. in September, 1992. report was received by assessing officer disclosing, inter alia, that alleged transaction of purchase and leasing back was sham transaction. Survey had been conducted under Section 133A and alleged lessee was unable to provide any particulars of alleged lease transaction. alleged lessee also admitted that information provided by assessee was inaccurate. alleged lessee also admitted that plants were not in existence. assessing officer after hearing assessee opined that alleged sale and alleged lease was device adopted for purpose of securing tax benefits whereas transaction was really 3 transaction of money lent and advanced. There was, as such, no scope for applicability of any depreciation which assessee wrongfully obtained. It is in these circumstances that power was exercised under Section 147 and fresh assessment was made which assessee unsuccessfully challenged before Commissioner of Income Tax and ultimately before Income Tax Appellate Tribunal. It is this order which is under challenge. We have heard Mr.Sen and we are of opinion that findings recorded by no means is perverse and there is no reason why High Court should entertain appeal, which is accordingly dismissed. (GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) sb. M/s. Magma Leasing Ltd. v. Commissioner of Income-tax, W.B., Kolkata
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