2013 (2) TMI 855 - AT - Income Tax

Summary

Issues involved: Department's appeal against deletion of depreciation on higher rate for assessment years 2007-08 and 2008-09.

Assessment Year 2007-08:
The department objected to the deletion of addition made by the AO on account of depreciation on a higher rate. The assessee, engaged in transportation business, claimed higher depreciation on concrete mixers mounted on trucks. The CIT(A) allowed the higher depreciation, considering the concrete mixers as part of the motor lorry. The Tribunal upheld the CIT(A)'s decision, citing similar cases and finding that the concrete mixers cannot be used separately from the motor lorry.

Assessment Year 2008-09:
Similar to the previous year, the department challenged the deletion of addition made by the AO regarding depreciation on a higher rate. The CIT(A) again allowed the higher depreciation, emphasizing that the concrete mixers are integral to the motor lorry and cannot be used independently. The Tribunal upheld the CIT(A)'s decision, relying on previous judgments and confirming that the concrete mixers are part of the motor lorry, justifying the higher depreciation.