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2011 (6) TMI 466 - AT - Income TaxDepreciation on tippers, vibrators, vibrator soil compactor - 40 per cent or 15 per cent - whether assessee is eligible to additional depreciation? - Held that:- The assessee is entitled to claim depreciation at the rate of 40 per cent on commercial vehicles which includes within its ambit all vehicles which fall in the category of commercial vehicles. The CIT (A) has given detailed justification for treating the tipper, vibrator and vibrator soil compactor as commercial vehicles.See Hindustan Construction Co. v. ITO [1988 (9) TMI 69 - ITAT AHMEDABAD-A], CIT v. A. M. Constructions [1998 (8) TMI 58 - ANDHRA PRADESH High Court] and Shiv Constructions Co. v. CIT [1986 (3) TMI 18 - GUJARAT High Court]. Thus CIT(A) has rightly directed AO to allow depreciation at 40 per cent on tippers, vibrator and vibrator soil compactor. Additional depreciation - As assessee fairly conceded that the assessee had never pressed any claim towards additional depreciation either before the AO or CIT(A) therefore the observations of the CIT(A) that the assessee is entitled to additional depreciation need to be vacated. Therefore vacate the observations made by CIT(A) that the assessee is entitled to additional depreciation on the aforesaid items. Expenses to the extent of 60 per cent disallowed on account of repair and maintenance of machinery - bills of expenses were on the small loose slips not on the regular bills - Held that:- As AO had not provided sufficient time to contest this addition & further the appellant submitted that the appellant gave all the information related to these expenses CIT(A) was correct in deleting the addition to the extent of 60 per cent.
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