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2016 (11) TMI 653 - AT - Income TaxBenefit of higher depreciation for pay loaders, dozers and water tankers - transportation of goods in its business of transportation of goods on hire - Held that:- Assessee was engaged in the business of transportation and the work of cleaning and loading were incidental to this. Having a look at Circular No.652 dated 14.6.1993 says that motor lorries used by the assessee in the business of transportation of goods on hire would be eligible for higher rate of depreciation. In other words, by virtue of this Circular, higher rate of depreciation @ 30% mentioned in Part II(3)(ii) of Appendix to the Income Tax Rules would get an extended meaning than what literally follows on their reading. The extended meaning would bring into its fold use of motor vehicles in a business of transportation of goods on hire. In our opinion, the agreement entered by the assessee with M/s Anand Transport clearly shows that its duty was to transport the goods provided by M/s Anand Transport from one place to another. We cannot say that element of ‘hiring’ was absent. The Bombay High Court in the case of CIT vs M/s SC Thakur & Bros [2009 (1) TMI 20 - BOMBAY HIGH COURT ] has clearly held that Circular No.652(supra) was admissible when the motor lorries were used by the assessee in its own business of transporting of goods on hire. Thus the assessee is entitled for depreciation on dumpers and pay loaders at the higher rate - Decided in favour of assessee
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