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2015 (7) TMI 809 - HC - Income TaxDepreciation allowance at the rate of 30% for the vehicles given on hire denied - Assessing authority limited the depreciation allowance to 15% in respect of the petitioner, only because of the TDS certificate in which the nature of payment was shown as payment to contractor and not as hire charges - Held that:- Merely on the basis of the TDS certificate furnished by M/s KSE Ltd. and the hire charges received per metric tonne, the claim of petitioner should not have been rejected. It is pertinent to note that the assessing authority as well as revisional authority, while rejecting the claim of petitioner refers to the contract receipt as one "for letting out lorries on hire". When they themselves admit that the petitioner firm was "letting out lorries on hire" the petitioner firm comes under Clause III(3)(ii) of Appendix I to the Income Tax Rules and is entitled to depreciation allowance @ 30%, It was engaged in the business of hiring trucks and those trucks cannot be treated as 'motor vehicles other than those used in the business of running them on hire' so as to limit the depreciation allowance to 15%. Thus it is declared that the petitioner will get the benefit of depreciation allowance at the rate of 30% . - Decided in favour of assessee.
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