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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 ..... 09 for a sum of Rs. 29,72,759/- and Maruti Shift Car of Rs. 6,74,555/- on 30.3.2009. The total investment made by the assessee was of Rs. 36,47,314/- in the previous year. It has claimed depreciation at the rate of 50%/2 i.e. 25%, because vehicles were not used for 365 days in the previous year. The assessee in this way worked out WDV at Rs. 27,35,485/-. The AO granted depreciation at the rate of 15%. Appeal to the CIT(A) did not bring any relief to the assessee. 4. With the assistance of the ld.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 sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;, but does not include 'maxi-cab', 'motor-cab', 'tractor' and 'road-roller'. (b) the expression 'heavy goods vehicle', 'heavy passenger motor vehicle'. 'Light motor vehicle', 'medium goods vehicle', 'medium passenger motor vehicle', 'maxi-cab', 'motor-cab', 'tractor' and 'roadroller' shall have the meanings respectively as assigned to them in Section 2 of the Motor Vehicles 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver, for hire or reward; "medium goods vehicle" means any goods carriage other than a light motor vehicle or a heavy goods vehicle; "medium passenger motor vehicle" means any public service vehicle or private service vehicle, or educational institution bus other than a motor cycle, invalid carriage, light motor vehicle or heavy passenger 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and "motor-cab". The maxi-cab as per provisions of Motor Vehicles Act means any motor vehicle constructed or adapted to carry more than six passengers but not more than twelve passengers excluding the driver for hire or reward. Similarly the term "motor c Jo" also excludes any motor vehicle for hire or reward. If the provisions of Explanation to this proviso and the definition of maxi-cab and motor cab as given in Motor Vehicles 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 L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar for the purpose of business 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) has 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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