Judgment :-

S.H. Kapadia, J.

Leave granted.

2. This civil appeal filed by the assessee is directed against judgment and order dated 22.9.2006 in ITA No. 164/04 by the Delhi High Court. By the impugned judgment, confirming the decision of the Tribunal, the High Court has held that the appellant (assessee) is not entitled to claim depreciation under Section 32(1)(ii) of the Income-tax Act, 1961 ("1961 Act" for short) in respect of two separate transactions dated 15.2.1991 and 15.3.1991. The impugned judgment has been rendered in respect of Assessment Year 1991-92 (corresponding to the previous year ending 31.3.1991).

(A) Facts Regarding Lease dated 15.2.1991 (Transaction No. I):

3. Before coming to the facts, the following is the relationship between the parties:

-M/s Glass & Ceramic Decorators was the manufacturer of soft drink bottles.

- Assessee was the `lessor.

- M/s Coolade Beverages Pvt. Ltd. was the `lessee.

4. During the relevant assessment year, the assessee carried on the business of trading in lamination machines & binding and punching machines. In addition, it was also engaged in the leasing business. During the year in question, the assessee had bought 5,46,000 soft drink