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2016 (11) TMI 443 - ITAT AHMEDABADDepreciation admissible on new induction of motor car in the block of assets - commercial v/s personal use - assessee claimed depreciation at the rate of 50%/2 i.e. 25% as vehicles were not used for 365 days in the previous year - The AO granted depreciation at the rate of 15% - Held that:- AO has granted depreciation at the rate of 15% without examining relevant provisions. It appears that his finding is based upon his experience and past impression. He was of the opinion that once Board has not granted higher rate of depreciation to cars, which are put in the business of hiring, then how a partner, who used motor car for the purpose of business can be granted at a such rate. In the case he had an impression, higher rate of depreciation at the most could be granted to the car used for the public transportation for the people. On appeal, the ld.CIT(A) observed that CBDT has amended I.T. Rules by Income Tax (Third Amendment) Rules, 2009 and new Appendix has been introduced. The ld.CIT(A) made reference to Notification no.10/2009 dated 19.1.2009 and also para-6 of the said notification which gives definition of commercial vehicle. I have examined this notification available on page no.1.426 of Income Tax Rules (3rd Edition) of Taxmann i.e. 2016 edition. Paragraph-6 contemplates definition of “commercial vehicle”. This paragraph is available at page no.1.433 of the Taxmann’s Income Tax Rules and find it is verbatim same as considered by the ITAT, Mumbai in Daleep S. Chandnani Versus Assistant Commissioner of Income-tax, Circle 4, Kalyan [2006 (10) TMI 262 - ITAT MUMBAI ]. There is no such condition that vehicle would qualify as “commercial vehicles” when licensed to be used as public transport - Decided in favour of assessee
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