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TMI Blog2022 (5) TMI 1599X X X X Extracts X X X X X X X X Extracts X X X X ..... l vehicles as per the fixed assets/depreciation schedule are used in the assessee s business, therefore, depreciation @ 15% is required to be allowed as against 30% claimed by the assessee - CIT(A) allowed depreciation @ 30% - HELD THAT:- DR could not controvert the findings of fact that as per circular No.652 dated 14.6.1993, the motor lorries used in assessee s business of transportation of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any is engaged in the business of transportation carriers of cars. During the course of assessment proceedings, the Assessing Officer noticed that in the profit and loss account for the year ended 31.3.2010, the assessee has claimed deduction of Rs.5,27,38,554/- for depreciation as per the Companies Act. He also noticed that depreciation @ 30% was claimed on commercial vehicle. The AO observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record for the given year was called for and verified. Ongoing through the audited accounts and the profit and loss accounts for the year under consideration, it is seen that the assessee has effectively the only source of income from transportation charges of Rs.67,60,59,591/-. The only other heads of income is other income of Rs.2,38,263/-. Therefore, it is clear that the only business of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been stated as under: In Board Circular No.609, dated 29.07.1991 (SI. No. 244) it was clarified that where a tour operator or travel agent uses motor buses or motor taxis owned him in providing transportation services to tourists, higher rate of depreciation would be allowed on such vehicles. It is further clarified that higher depreciation will also be admissible on motor lorries used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 7. In the result, appeal of the revenue is dismissed. 8. The cross objection filed by the assessee is in support to the order of the ld CIT(A). Since we have upheld the findings of the ld CIT(A), the cross objection filed by the assessee has become infructuous, hence, dismissed. 9. In fine, the appeal of the revenue and cross objection of the assessee are dismissed. Order pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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