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TMI Blog2019 (5) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance at 15%. No merit in the aforesaid plea of the assessee on the ground that the assessee could not demonstrate such narrative on facts as to whether the assessee has earned any receipt towards hire of vehicle in the so-called composite contract. No evidence has been produced to justify the presence of element of receipt on account of hire of vehicle. Therefore, the contention of the assessee is abstract and cannot be endorsed. Therefore, we decline to interfere with the action of the AO on this score. Ground No.1 is accordingly dismissed. Additional depreciation on transit mixture u/s 32(1)(iia) - Alternative claim raised by the assessee accepted - The transit mixer is stated to be mounted on the chassis to enable the RMC manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its determination in accordance with law. Ground No.3 of the assessee's appeal is allowed for statistical purposes. - I.T.A. Nos. 3425 And 3426/Ahd/2015 - - - Dated:- 12-3-2019 - SHRI P. P. BHATT, PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For The Appellant : Shri Rohan Thakkar, A.R. For The Respondent : Shri Lalit P. Jain, Sr.D. R. ORDER Per : Pradip Kumar Kedia, AM : The captioned appeals have been filed at the instance of the Assessee against the respective orders of the Commissioner of Income Tax (Appeals)-2, Ahmedabad ('CIT(A)' in short), dated 21.09.2015 14.10.2015 arising in the respective assessment orders both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee is engaged in the business of manufacturing of Ready Mix Concrete ('RMC') which is primarily required in construction business. For manufacture of RMC, the raw materials such as cement, kapchi, sand and fly ash and chemicals are mixed to produce RMC. The manufacturing of the RMC is done at batching plant and thus, RMC comes into existence at the factory. Thereafter, an ancillary process is done at transit mixer i.e. mixture on transit from factory to site is kept in a wet form which could be utilized at construction plant. The movement of RMC is done in Road Transport Vehicle on which a transit mixer is suitably mounted. It was contended that the supply of RMC are agreed to be delivered at construction site and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the claim of the assessee by way of additional grounds. 7. The learned DR, on the other hand, relied upon the order of the authorities below. 8. We have carefully considered the rival submissions. 8.1 On careful consideration of grievance raised as per Ground Nos. 1 2, we notice that the assessee primarily seeks accelerated depreciation on truck/chassis on which mixers is mounted equivalent to what is available to vehicles used for hire. It is the case of the assessee that chassis truck should be treated akin to being used in the business of running it on hire owing to composite nature of contract and consequently higher rate on depreciation at 30% should be allowed to the assessee instea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owability of additional depreciation on mounted mixer on first principles. However, the cost of purchase of mixer during the year requires factual examination. Consequently, the issue is remitted back to the file of the AO for examining the factual aspect and for determination of additional depreciation on mounted mixer. Needless to say, the assessee shall provide factual details and documentary evidence to assert its claim of additional depreciation before AO. Ground No.2 is accordingly allowed for statistical purposes. 9. Ground No.3 concerns addition on account of difference between income reflected in the books of account qua the annual tax statement under s.26AS maintained by the Income Tax department. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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