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2006 (3) TMI 670 - AT - Income TaxChallenged the order u/s 263 passed by the CIT - erroneous and prejudicial - business being hiring of cranes - Depreciation on cranes fall under which block "25% or 40%" - mounted on motor lorries and registered as such under the MV Act - HELD THAT:- It is now a settled position of law that for coming to the conclusion as to whether the order of the Assessing Officer was erroneous or prejudicial to the interest of revenue, the relevant record would be record as was available to the CIT at the time when the record was perused by him for initiating proceedings u/s 263 of the Act. Thus, in the facts of the present case, the ld. CIT clearly had jurisdiction and he correctly held that the order of the Assessing Officer dated 31-3-1999 was erroneous and prejudicial to the interest of revenue. We therefore, hold that assumption of jurisdiction by the ld. CIT u/s 263 of the Act was correct. Whether the cranes can be said to be motor lorries used in the business of hiring - depreciation u/s 32 - Hon’ble Gujarat High Court has held that the crane was integral part of the motor lorry. Thus, apparently, the case of the appellant is akin to that of the case in the case of Gujco Carriers [2002 (2) TMI 48 - GUJARAT HIGH COURT] is directly on the issue and as the revenue has failed to show that any other High Court has expressed a contrary view, respectfully following the same, we hold that the appellant is entitled to depreciation at the rate of 40 per cent on the mobile cranes. This ground of the appellant is allowed. In the result, the appeal of the assessee is partly allowed.
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