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2015 (1) TMI 742 - AT - Income TaxClaim of higher rate of depreciation - whether equipment i.e. payloaders, JCBs and 400V loaders can be classified as plant and machinery for the purpose of depreciation and not as motor bus, motor lorry or any transport/goods vehicle? - Held that:- Mobile crane of the assessee which admittedly was registered as a heavy motor vehicle, for the above reasons, clearly fall within the expression 'motor lorries' (which means motor trucks) in heading III E (1A) of the Table in Appendix 1 under rule 5 since it was used by the assessee in its business of running the crane on hire. Therefore, wrong in holding that the assessee was not entitled to depreciation at 40 per cent on crane mounted on motor truck. - Decided in favour of assessee. Depreciation on Commercial Transport Vehicle claimed at @30% - recourse to section 154 by AO restricting the depreciation @15% - Held that:- The issue could not have been taken by the AO u/s 154 of the Act in as much as the issue was debatable and it required investigation both on facts as well as applicability of law. In this view of the matter assessee's Cross Objection is liable to succeed. Accordingly Cross Objection of the assessee stands allowed. - Decided in favour of assessee. Reopening of assessment - depreciation on Tata & JCB loaders @ 40% are excessive whereas @25% is allowable - Order u/s 263 by the C.I.T. by dropping the proceedings after accepting the plea of the assessee - Held that:- Once the issue has already been examined and held in favour of the assessee u/s 263 of the Act the same cannot be the subject matter of reopening by the AO. In this view of the matter we hold that the assumption of jurisdiction by the AO in this case was bad in law and accordingly we set aside the reopening.- Decided in favour of assessee.
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