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2020 (9) TMI 313 - AT - Income TaxDepreciation on vehicles u/s 32 - @30% or 50% - assessee has claimed depreciation @ 50% i.e. on tankers - AO restricted the claim of depreciation @ 30% in respect of addition made to such commercial vehicles - HELD THAT:- Commercial vehicles were purchased by the assessee during F.Y. 2008-09 and 2009-10 which were eligible to special rate of depreciation @ 50%. It is noticed that no new vehicle has been purchased by the assessee during the year under consideration. It is observed that no depreciation can be claimed for individual assets under income tax act because of concept of block of assets. Depreciation in the case of the assessee is eligible as per the block of asset otherwise if such expenditure are put in the category of repair/revenue expenditure then the full claim of such expenditure are to be allowed. Since the assessing officer has treated such expenditure as capital expenditure, therefore, we consider that no new asset has been created on renovation of the commercial vehicle. Therefore, the claim of the assessee for depreciation @ 50% applicable to the particular block of assets is justified. Appeal of the assessee is allowed.
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