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TMI Blog2012 (8) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... vi)Note 6 of the table “Commercial vehicle” means …............. “light motor vehicle” , thus vehicles in respect whereof depreciation has been claimed by the respondent at 50% per annum are light motor vehicles and that the above provisions of the Act and the Rules apply in the present case - in favour of assessee. - INCOME TAX APPEAL NO. 828 OF 2010 - - - Dated:- 8-8-2012 - S.J. VAZIFDAR, M.S. SANKLECHA, JJ. Mr. Vimal Gupta for the Appellant. Mr. J.D. Mistri, senior counsel with Mr. Atul Jasani for the Respondent. JUDGMENT : [Per S.J. Vazifdar, J.] 1. This is an appeal under section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal dated 2nd July, 2009 in ITA No.724/Mum/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n at 50%, but the A.O. held that the respondent had failed to substantiate as to how the same could be termed `commercial vehicles'. He observed that to avail of the depreciation at 50%, the vehicles must be used for commercial purposes and merely because the respondent used the vehicles in its business, the vehicles could not be categorized as commercial vehicles. This was on the basis that to be categorized as commercial vehicles, the same must earn revenue by being used in the business of hiring. 4. The Commissioner of Income Tax (Appeals) [CIT(A)] held in the respondent's favour, inter-alia, on the basis of the previous decision of the CIT(A) as well as the Tribunal. The Tribunal upheld the decision in this regard. The Tribunal held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of depreciation of any block of assets shall be calculated at the percentages specified in the second column of the Table in Appendix-I to these rules on the written down value of such block of assets as are used for the purposes of the business or profession of the assessee at any time during the previous year. [emphasis supplied] (ii) APPENDIX-I PART-A (TANGIBLE ASSETS), III. MACHINERY AND PLANT (3) (vi) read as under : III. MACHINERY AND PLANT ........ (3) (i) ....... to (v) .......... (vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [See Note 6 below ..... X X X X Extracts X X X X X X X X Extracts X X X X
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