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TMI Blog2018 (6) TMI 1609X X X X Extracts X X X X X X X X Extracts X X X X ..... epreciation, as removal and transportation of earth are only sub-processes of his main business of laying of roads. The order of CIT (A) entitling the assessee for higher rate of depreciation on the premise that his motor vehicles were used for removal of earth and since the earth did not belong to the assessee, therefore, the use of his motor vehicles was on hire, in the opinion of this Court, is not correct, either on facts or in law as decided in Anamay Construction [ 2015 (10) TMI 2740 - MADHYA PRADESH HIGH COURT ]. The argument of the appellant that the shifting of soil from sites etc. would make him eligible for the definition of hiring on behalf of others is therefore not relevant in this case and in my opinion he will not be en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork. The assessee has claimed higher depreciation @ 30% on dumpers, trucks, excavator/JCB. The AO disallowed the claim of the assessee on the ground that the assessee has not given these vehicles on hire. Therefore, the higher depreciation is not applicable when the assessee is not in the business of running the vehicles on hire. The assessee challenged the action of the AO before the ld. CIT (A) and reiterated his claim of higher depreciation that the vehicles are registered as commercial vehicles and, therefore, illegible for depreciation @ 30%. The ld. CIT (A) has considered and decided this issue at pages 5 to 7 as under :- I have gone through assessee s submission and AO s findings. The appellant is a Civil Contractor and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Gaylord Constructions (2010) 190 Taxman 406 (Ker) the question raised in appeal filed by the Revenue was whether the Tribunal was justified in upholding the assessee s claim for depreciation of earth moving equipment, namely, JCB at the rate of 40%; the rate provided for Motor Buses, Motor Lorries, Motor Taxis, used in the business of running them on hire and as such, the assessee was in the business of running the motor vehicles on hire, however, the question was whether higher rate of depreciation was available for putting the JCB machine on hire and the Court ruled that the expression motor lorry , covered by the entry in the Appendix-1 of Income Tax Rules providing for higher rate of depreciation, has a wide meaning and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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