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Issues involved: Appeal against CIT(A) order for assessment year 2010-2011 regarding grant of depreciation on motor car used for business.
Summary: The appeal was filed by the assessee against the order of the CIT(A)-XVI, Ahmedabad, challenging the denial of depreciation amount on a motor car used for business. The assessee contended that as per a CBDT notification, a commercial vehicle (Innova Car) used for business purposes was eligible for higher depreciation at a rate of 50%. The assessee argued that the term "commercial vehicle" in the notification included vehicles used for business or profession like lawyer, doctor, etc. The Revenue opposed this claim, relying on the AO and CIT(A) orders. Upon review of submissions and relevant documents, including the CBDT notification dated 19.1.2009, it was observed that the assessee-HUF fell under the category of "individuals" as per the notification. The notification defined "commercial vehicle" as a vehicle used for business or profession, excluding salaried employees. The assessee asserted that the vehicle was solely used for business purposes, a claim not disputed by the Revenue. All conditions for claiming higher depreciation were met by the assessee, and the Revenue did not raise any objections to the same. Consequently, considering the facts and legal provisions, the issue was decided in favor of the assessee, and the ground of appeal was allowed. As a result, the appeal of the Assessee was allowed by the Appellate Tribunal ITAT Ahmedabad. Order pronounced in Open Court on the date mentioned hereinabove.
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