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TMI Blog2016 (11) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... siness can be granted at a such rate. In the case he had an impression, higher rate of depreciation at the most could be granted to the car used for the public transportation for the people. On appeal, the ld.CIT(A) observed that CBDT has amended I.T. Rules by Income Tax (Third Amendment) Rules, 2009 and new Appendix has been introduced. The ld.CIT(A) made reference to Notification no.10/2009 dated 19.1.2009 and also para-6 of the said notification which gives definition of commercial vehicle. I have examined this notification available on page no.1.426 of Income Tax Rules (3rd Edition) of Taxmann i.e. 2016 edition. Paragraph-6 contemplates definition of “commercial vehicle”. This paragraph is available at page no.1.433 of the Taxmann’s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.representatives, I have gone through the record carefully. The ld.counsel for the assessee relied upon the order of the ITAT, Mumbai Bench in the case of Daleep S. Chandnani Vs. ACIT, reported in 14 SOT 0233. The Tribunal has considered verbatim same situation in that case. Discussion made by the Tribunal reads as under: 7 . We have considered the submissions made by both the sides, material on record, orders of authorities below and applicable legal provisions. The interesting question which has arisen before us is regarding the rate of depreciation applicable to motor car acquired between 2-10- 1998 and 31-3-1999 and if the same has been put to use between the same period for the purpose of business of the assessee. As far as us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicles Act, 1988 (59 of 1988). 2. Relevant provisions of Appendix-I and note thereto. (iia Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purpose of business or profession in accordance with the third proviso to Clause (ii) of Sub-section (1) of Section 32 (see Note 3A below the Table) 3A. commercial vehicle means heavy goods vehicle , heavy passenger motor vehicle , light motor vehicle , medium goods vehicle and medium passenger motor vehicle but does not include maxi-cab , Motor-cab , tractor and road-roller . The expressions heavy goods vehicle , heav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... motor vehicle; motor cab means any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward; 8. As per the third proviso to Section 32 of the Act, in respect of the asset being commercial vehicle acquired between 2-10-1998 and 31-3- 1999, the depreciation has to be allowed on such percentage on the written down value thereof as may be prescribed. As per the provisions of Section 43(6)(c)(ii). W.D.V. means the written down value of that block of asset as increased by the actual cost of any asset falling within that block acquired during the previous year and as reduced by the monies payable together with scrap value if any in respect of the assets falling within that blo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1988 are read together then motor vehicles used for hire or reward would not be covered under this proviso to Section 32 of the Act, and such motor vehicles would be covered under entry (2)(ii) of Item-3 of Part-A of Appendix-I to Rule 5 of the Rules. This conclusion further leads to an interference that the Legislature has given benefit of higher depreciation to the assessees not engaged in the business of Motor Buses, Motor Lorries and Motor Taxies on hire and defining such light motor vehicles as commercial vehicles though intentionally excluding vehicles commercially exploited for yielding income from the definition of commercial vehicle further supports the case of the assessee. We also find sufficient force in the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 19.1.2009 and also para-6 of the said notification which gives definition of commercial vehicle. I have examined this notification available on page no.1.426 of Income Tax Rules (3rd Edition) of Taxmann i.e. 2016 edition. Paragraph-6 contemplates definition of commercial vehicle . This paragraph is available at page no.1.433 of the Taxmann s Income Tax Rules. I find it is verbatim same as considered by the ITAT, Mumbai. There is no such condition that vehicle would qualify as commercial vehicles when licensed to be used as public transport. For facility of reference, I take note of this as under: 6. Commercial vehicle means heavy goods vehicle , heavy passenger motor vehicle , light motor vehicle , medium goods vehicle and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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