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2015 (10) TMI 2740 - HC - Income TaxHigher rate of depreciation u/s 32 on trucks used for its business purpose - @40% or 30% - determinative factor for deciding whether trucks were used by the assessee during the relevant year in a business of running them on hire - Held that:- In the present case, admittedly, the assessee is in the business of civil construction. The assessee had engaged his own Trucks for transporting earth to facilitate laying of roads. Under such circumstances, the assessee cannot be said to be in the business of hiring out his Trucks for removal of earth to make him entitled for higher rate of depreciation, 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, besides not being in conformity with the test laid down by the Apex Court in Gupta Global Exim (P) Ltd.[2008 (5) TMI 7 - SUPREME COURT] and also, with the Board's Circular No.609/Circular No. 652 dt. 14/6/93. - Decided in favour of revenue.
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