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2014 (2) TMI 848 - DELHI HIGH COURTClaim of depreciation u/s 32 - ownership of truck given on hire - Whether there was any material before the Tribunal to come to the conclusion that the trucks in question were given on hire and the claim of depreciation on the trucks can be accepted or not – Held that:- The Tribunal was of the view that the trucks can be got registered only when necessary formalities about the completion of the body building, insurance, etc. were completed - the trucks were registered during the period from 14.03.1986 to 28.03.1986 – thus, the finding of the Tribunal that the assessee was owner of the trucks cannot be disputed. The Tribunal has noted that the assessing officer, before whom the affidavit was filed did not summon Sardar Inder Singh to verify the correctness of contents of the affidavit nor did he make any inquiries through the Inspector - There are other materials on the basis of which the Tribunal held that the assessee did receive hire charges for letting out the trucks on hire - It has noted that the hire charges received by the assessee in the accounting year relevant to the assessment year 1986-87 were assessed as the assessee’s income - The sale consideration was found by the Tribunal to have been received by the assessee directly from the finance companies - the Tribunal did not find any justification to doubt the genuineness of the sale of the trucks. The Tribunal came to the conclusion in all the three years that the assessee was in receipt of hire charges and thus satisfied the second condition of Section 32(1) i.e. that the asset owned by the assessee should be used for the purpose of the business of the assessee - the assessing officer was not able to discredit or impeach the evidence adduced by the assessee to show that it was in receipt of hire charges - The assessing officer was not able to show that the claim was bogus – thus, there was material before the Tribunal to come to the conclusion that the trucks in question were given on hire - There is no substantial question of law framed on the aspect of whether the assessee was the owner of the trucks - Thus both the conditions of Section 32(1) stand satisfied – thus, the Tribunal was correct in law in accepting the assessee’s claim for depreciation on the trucks –Decided against Revenue.
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