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TMI Blog2006 (3) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable to the CIT at the time when the record was perused by him for initiating proceedings u/s 263 of the Act. Thus, in the facts of the present case, the ld. CIT clearly had jurisdiction and he correctly held that the order of the Assessing Officer dated 31-3-1999 was erroneous and prejudicial to the interest of revenue. We therefore, hold that assumption of jurisdiction by the ld. CIT u/s 263 of the Act was correct. Whether the cranes can be said to be motor lorries used in the business of hiring - depreciation u/s 32 - Hon ble Gujarat High Court has held that the crane was integral part of the motor lorry. Thus, apparently, the case of the appellant is akin to that of the case in the case of Gujco Carriers [ 2002 (2) TMI 48 - GUJARAT HI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case are as under. Assessment for assessment year 1996-97 was completed on 31-3-1999 under section 143(3) wherein it was noted by the Assessing Officer at the business of the assessee was material handling work. The assessee-company was over the business of material handling work and other business which were carried on by different firms in which the Directors of the assessee-company were partners along with others. The Assessing Officer made an addition of Rs. 5,30,000 in the assessment order, thereby reducing total loss to Rs. 11,22,836 as against the returned loss of Rs. 16,52,836. 3.2 The ld. CIT, API after assuming jurisdiction under section 263 of the Act, passed an order dated 17-2-2001, wherein he held that the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extensively and perused the record carefully. The main argument of the ld. Counsel for the assessee was reliance on the Hon ble Gujarat High Court s decision in the case of Gujco Carriers v. CIT [2000] 256 ITR 50, wherein the Hon ble Gujarat High Court has allowed depreciation at the rate of 40 per cent to mobile cranes in the facts and circumstances of that particular case. The argument of the ld. Counsel was therefore that as there could be two views on the issue, and the Assessing Officer followed one view, it cannot be said there was any error in the order of the Assessing Officer. The ld. Counsel for the assessee has also produced evidence to show that the cranes were registered under the M.V. Act as heavy motor vehicles and some of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT whereas the view of the ld. CIT was supported by various High Court decisions including the jurisdictional High Court decision of Super Drills case ( supra ). It is now a settled position of law that for coming to the conclusion as to whether the order of the Assessing Officer was erroneous or prejudicial to the interest of revenue, the relevant record would be record as was available to the CIT at the time when the record was perused by him for initiating proceedings under section 263 of the Act. Thus, in the facts of the present case, the ld. CIT clearly had jurisdiction and he correctly held that the order of the Assessing Officer dated 31-3-1999 was erroneous and prejudicial to the interest of revenue. We therefore, hold that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expression "motor lorries" and would be entitled to depreciation as that allowable to motor lorries. The assessment year involved in the above case was 1982-83. 9. CIT v. SCS Rig Service [1996] 220 ITR 64 (Mad.). In this case, the Hon ble Madras High Court held that rigs and compressor cannot be held to be integral parts of motor lorries and, therefore, the rigs and compressor used for drilling borewells though mounted on a lorry cannot be held to fall under motor lorry. 10. CIT v. Super Drills [1988] 174 ITR 640 (AP). In this case, the assessee claimed depreciation at 30 per cent on the rig and compressor used in drilling borewells under item D(7) of Appendix-1 III, which was disallowed by the Assessing Officer. The Tribunal, however ..... X X X X Extracts X X X X X X X X Extracts X X X X
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