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2015 (9) TMI 701 - AT - Income TaxDepreciation on the written down value of the vehicles used in the business of transportation of municipal solid waste - @ 30% OR @15% - Entitlment for higher rate of depreciation - Held that:- CIT (A) has failed to construe the circular in right perspective. According to the learned CIT (A) the circular is applicable if an assessee has used the motor vehicle for transporting the goods on hire or the higher rate of depreciation would be applicable or given on hire like Taxis. In the present case, the assessee has been transporting the solid waste of municipality on hire. Thus, the very nature of the assessee’s business is such which bring him in the ambit of the circular. It is not the case where a person is running any consultancy firm and used a motor car for himself. Here the vehicles are used for transporting the goods of third concern by virtue of a contract. There is a commercial exploitation of the vehicles for transporting the goods on hire. Therefore, the assessee is entitled for higher rate of depreciation. We allow the appeal of the assessee and delete the disallowance.- See Urmila and Co. Vs. DCIT [2011 (1) TMI 1227 - ITAT MUMBAI] - Decided in favour of assessee.
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