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TMI Blog2014 (1) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act - It is for the respective transportation department to take action for the contravention of its Rules but the Income Tax authorities cannot disallow the claim of depreciation – thus, the claim of depreciation of the assessee allowed at the prescribed rates – Decided in favour of Assessee. - IT Appeal No. 1726 (Hyd.) of 2012 - - - Dated:- 24-5-2013 - P.MADHAVI DEVI, J. For the Appellant : Mohd. Afzal. For the Respondent : Phani Raju. ORDER:- This is assessee's appeal for the A.Y. 2005-2006. The assessee is aggrieved by the Order of the CIT(A) dated 31.7.2012 confirming the disallowance of depreciation of Rs.2,25,000/- claimed by the assessee. 2. At the outset, it is noticed that the appeal is barre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condoned. For this purpose, he placed reliance upon the decision of the Third Member of the Tribunal at Chennai in the case of Jt. CIT v. Tractors Farm Equipments Ltd. [2007] 104 ITD 149. 4. Having heard both the parties and having considered the material available on record, we find that the appeal was to be filed by the assessee on or before 7th October, 2010. As per the contention of the assessee, the assessee has forwarded the relevant documents to the Accountant as soon as he received the Order of the CIT(A) and he proceeded on the pilgrimage on 2.10.2012 i.e., before the last date for filing of the appeal. The assessee has also filed copy of the medical certificate issued by the medical practitioner in proof of the fact that he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was claimed in the return of income was put to use during the relevant previous year and in support of his claim, he filed a receipt bearing no.1299 issued by Satish Road Lines, Hyderabad. He also filed copy of the temporary certificate of registration. The Assessing Officer noticed that as per invoice issued by Satish Road Lines, the assessee has transported M.S.Radar from Himayatnagar to Jeedimetla for which hire charges were received. He also observed that the assessee had claimed depreciation on Leyland Bus with a different registration number. Further, he also observed that the bill produced before him from Satish Road Lines relates to goods carrier while the depreciation claimed relates to a commercial bus. He, therefore, held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submitted that the assessee having used the vehicle and having received the hire charges has furnished the copy of the invoice of Satish Road Lines before the Assessing Officer and the CIT(A) and both the authorities have not doubted the genuineness of the same. He submitted that once the assessee has established that the vehicle was put to use by the assessee for his business purposes, the depreciation cannot be disallowed. 8.1 In the alternative, learned Counsel for the assessee also claimed that the assessee being in the business of hiring of vehicles and having the turnover of less than Rs. 40 lakhs, is not required to get his books of accounts audited, particularly, when the assessee is having only six vehicles. However, he submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct are fulfilled. As far as the application of section 32 is concerned, the conditions prescribed are that the assessee should be the owner of the vehicle and has to use the vehicle for the purpose of his business. In proof of the fact that the assessee has the ownership of the vehicle, the assessee has filed temporary registration certificate issued by the Transport Authorities and also the Permanent Registration Number before the Assessing Officer. Therefore, the ownership of the assessee over the vehicle is not in dispute. As far as the use of the vehicle is concerned, both the Assessing Officer as well as the CIT(A) have observed that the vehicle is for commercial use and not for transportation of goods. They have further observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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