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2022 (3) TMI 782 - HC - Income TaxHigher depreciation on vehicles given on lease - @40% instead of the normal rate of 25% - No evidence was produced to show that the vehicles were being run on hire - HELD THAT:- First substantial question of law relating to depreciation on leased vehicle is covered in favour of the assessee and against the Revenue in the light of the decision of the Hon'ble Supreme Court in the case of ICDS v. CIT [2013 (1) TMI 344 - SUPREME COURT] wherein, it was held that “where leasing of machinery is a mode of carrying on business by the assessee, the assessee would be entitled to claim depreciation and when the actual use of the vehicle is in hire business, it is entitled for depreciation at a higher rate" - Decided in favour of Assessee Broken period interest - Whether to be treated as revenue expenditure? - HELD THAT:- The finding of fact is to the effect that securities are held as stock-in-trade and that the income from sale therefrom is offered to tax as revenue. In the light of the admitted facts as seen from the order of the authorities, the expenditure incurred by the assessee towards broken period is liable to be allowed as revenue expenditure. There is no infirmity in this.- Decided in favour of Assessee Depreciation in the value of securities - HELD THAT:- Issue covered in favour of the assessee and against the Revenue, as per the judgment in respect of the assessee's own case relating to the assessment years 1985-86 and 1986-87 [2006 (2) TMI 99 - MADRAS HIGH COURT] wherein, it was concluded that “the assessee Bank having all along treated the Government securities as its stock-in-trade and the Revenue having accepted this position in the earlier years, fall in market value of the securities was allowable as deduction” - Decided in favour of Assessee. Interest under section 234D - HELD THAT:- Since the regular assessment has been completed only on 30.03.2004 and the amended provision of law i.e., section 234D came into operation on and from 01.06.2003, which is well prior to the completion of the regular assessment, certainly, the assessee is liable to pay interest on the excess refund amount received and enjoyed by him all these years as contemplated under section 234D of the Act. - Decided in favour of revenue.
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