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2019 (2) TMI 805 - AT - Income TaxReopening of assessment - A.O made disallowance of depreciation of trucks and dumpers to 15% as against 30% applicable to vehicles used in hire business - Held that:- We observe that the assessee owns the trucks and dumpers as commercial vehicles and is using them for hiring business since last many years. The claim of depreciation @30% has been allowed in the preceding years, there is no dispute about the assets being put to use and ready to use for hiring business. This activity continued in the subsequent years also. These assets namely trucks and dumpers are part of the 30% block of the assets as on 1.4.2007 and WDV is shown at ₹ 19,48,988/- in the audited statement attached with Form 3CA of the Tax Audit Report. Depreciation is eligible on assets which are ready for use and which are already used immaterial of the fact that such assets were used in the year or not” - thus the assessee is entitled for 30% depreciation on the WDV of trucks and dumpers which are purchased as commercial vehicle and consistently used in the running of hiring. Thus Ground of the assessee stands allowed.
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