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TMI Blog2019 (7) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... AO in the assessment order and that the disallowance was made on the basis of vague reasons. We also find merit in the contention of the ld. D.R. that the case laws cited on behalf of the assessee before the ld.CIT(Appeals) were distinguishable on facts and the ld. CIT(Appeals) was not justified in relying on the same to allow the claim of the assessee for higher depreciation on motor lorries/trucks. In the present case, it appears that neither the AO nor the ld. CIT(Appeals) to have examined as to whether the assessee was in the business of hiring out its motor lorries/trucks in addition to its business of providing logistic solutions and whether it had actually earned any income by hiring the said vehicles. We, therefore, consider it fair and proper and in the interest of justice to set aside the impugned order passed by the ld. CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer for deciding the same afresh in accordance with law after necessary verification. The appeal of the Revenue is accordingly treated as allowed for statistical purposes. Disallowance u/s 14A applying Rule 8D - HELD THAT:- As relying on the decision of this Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that the claim of the assessee for depreciation at a higher rate on motor lorries/trucks was allowed by the Assessing Officer without examining as to whether the said lorries were used by the assessee for running the same on hire. The ld. CIT accordingly directed the Assessing Officer to make the assessment afresh after examining the claim of the assessee for higher depreciation on motor lorries/trucks in accordance with law after necessary verification. As per the direction of the ld. CIT, the Assessing Officer required the assessee to furnish the details of vehicles purchased and also to substantiate its claim for higher depreciation on such vehicles by establishing that it was engaged in the business of running the said vehicles on hire. The explanation offered by the assessee in this regard, however, was not found satisfactory by the Assessing Officer. According to the Assessing Officer, the assessee company was engaged in the business of providing a range of logistic solutions like Bulk Movement, Dedicated Containerized Movement, Door Delivery and Door Collection to its customers and since the motor lorries/trucks were used by it for the said business rather than using th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) ABC India Ltd. (226 ITR 914) Gauhati ii} BPL Sanyo Finance (287 ITR 69) Karnataka iii] Balakrishna Transports (233 ITR 133) Kerala iv) Gupta Global Exim (305 ITR 132) SC (v) Sardar Stones (215 ITR 350) Rajasthan 2.2. I have gone through the above judicial decisions. These decisions are applicable in the case of the appellant entitling it to higher rate of depreciation as allowable in the case of running motor lorries on hire. In any case, the A.O. has not made out a case that the appellant did not use its vehicles fill running them on hire. The CIT's order talks of verification of assets added and rate applied. There is no direction to the A.O. for denying the higher rate of depreciation. The A.O. was directed to re-do the assessment on the said limited issues. The A.O. has mechanically rejected the appellant's claim without any basis. 2.3. I see that the appellant's business is covered by the above decisions. The A.O.'s action cannot be sustained. The ground is allowed. The appeal is thus allowed". Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal. 5. The ld. D.R. submitted that the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer after recording a specific adverse finding and the ld. CIT(Appeals) was not correct in observing that no such adverse finding was recorded by the Assessing Officer in the assessment order and that the disallowance was made on the basis of vague reasons. We also find merit in the contention of the ld. D.R. that the case laws cited on behalf of the assessee before the ld.CIT(Appeals) were distinguishable on facts and the ld. CIT(Appeals) was not justified in relying on the same to allow the claim of the assessee for higher depreciation on motor lorries/trucks. For instance, in the case of ABC India Limited(226 ITR 914), Guwahati, the assessee-company was engaged in transport business with the help of its own trucks as well as hired trucks of other persons and since it did not carry on any business other than running those vehicles for hire, it was held by the Hon'ble Guwahati High Court that the assessee-company having used the motor vehicles and lorries for running them on hire was entitled for depreciation at a higher rate. In the case of BPL Sanyo Finance (P) Limited (287 ITR 69), the assesese-company had leased the motor vehicles to its sister concern to ferry B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion after making an enquiry as to whether the assessee had actually earned any income by hiring lorries. 9. In the present case, it appears that neither the Assessing Officer nor the ld. CIT(Appeals) to have examined as to whether the assessee was in the business of hiring out its motor lorries/trucks in addition to its business of providing logistic solutions and whether it had actually earned any income by hiring the said vehicles. We, therefore, consider it fair and proper and in the interest of justice to set aside the impugned order passed by the ld. CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer for deciding the same afresh in accordance with law after necessary verification. The appeal of the Revenue for A.Y. 2011-12 is accordingly treated as allowed for statistical purposes. 10. As regards the appeal of the Revenue for A.Y. 2014-15 being ITA No. 1867/KOL/2017, it is observed that the issue raised in Ground No. 1 thereof relating to the deletion by the ld. CIT(Appeals) of the disallowance made by the Assessing Officer on account of assessee's claim for higher depreciation on motor lorries/trucks is similar to the one involved in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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