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TMI Blog2015 (9) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... ’s business is such which bring him in the ambit of the circular. It is not the case where a person is running any consultancy firm and used a motor car for himself. Here the vehicles are used for transporting the goods of third concern by virtue of a contract. There is a commercial exploitation of the vehicles for transporting the goods on hire. Therefore, the assessee is entitled for higher rate of depreciation. We allow the appeal of the assessee and delete the disallowance.- See Urmila and Co. Vs. DCIT [2011 (1) TMI 1227 - ITAT MUMBAI] - Decided in favour of assessee. - ITA No.261/Bang/2014 & SP No.101/Bang/2014 - - - Dated:- 21-11-2014 - Shri Rajpal Yadav and Shri Jason P. Boaz, JJ. For The Assessee : Shri Suresh Muthukrishnan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hicles etc. It had claimed depreciation in M/s Swachatha Corporation of ₹ 55,22,756/- @ 30% and in M/s C.V. Bhanumurthy Reddy on similar vehicles depreciatin has been claimed at 41,41,793/- @ 30%. The learned Assessing Officer confronted the assessee as to why depreciation should not be allowed @ 15%. The assessee has filed a detailed note indicating his activities and as to why depreciation is applicable @ 30%. Assessing Officer was not satisfied with the contention of the assessee. He allwoed the depreciation @ 15% and made an addition of ₹ 48,32,274/-. 3. Dissatisfied with the action of the Assessing Officer, assessee carried the matter in appeal before the CIT (A). He relied upon the circular of the Board bearing No.652 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets which deteriorate during the course of its user in the business. Part-A of the appendix annexed with the Income Tax Rules provide a table exhibiting the rate of depreciation on different nature of the machinery. The assessee had claimed depreciation on the basis of Entry No.III(3)(ii) of Part-A of the new appendix-I to the I.T Rules, whereas the Assessing Officer was of the view that the assessee ought to have claimed depreciation in terms of Entry No.III(i) of part-A of the new appendix. The relevant entries read as under: III. Machinery and Plant (1) (1) Machinery and plant other than those covered by sub-items (2), (3) and (8) below: (2) Motor cars, other than those used in business of running them on hire, acquired or put ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned counsel submits that considering the judgment of the Supreme Court in CIT vs. Gupta Global Exim (P) Ltd. (2008) 216 CTR (SC) 368 : (2008) 171 Taxman 474 (SC) the correct test which the authorities below had to apply was whether the appellant was in the business of transportation and whether the vehicles were used in the said business. 3. In the instant case, the learned CIT(A) for the asst. yr. 1996-97 recorded a finding that the appellant was required to transport the earth from one place to another for filling and the earth so transported did not belong to the assessee and as such the appellant s business receipts to a large extent, can be held to be price of the charges received for transporting the goods from one place to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee s business of transportation of goods on hire. The higher rate of depreciation however, will not apply if the motor business, motor lorries etc. are used in some other non-hiring business of the assessee. 5. A perusal of the said circular would make it clear that the higher rate of depreciation is also admissible when the motor lorry is used by the assessee in his own business of transportation of goods on hire. Considering the findings recorded by CIT(A) and the Board s circular and the judgment of Supreme Court in Gutpa Global Exim (supra), in our opinion, no error can be found in the orders of the CIT(A) as also that of Tribunal 7. If we peruse the facts of the present case in the light of the Hon'ble Bombay High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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