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2019 (5) TMI 175 - AT - Income TaxEligibility of higher rate depreciation on truck chassis fixed with transit mixture - vehicle used for hire - additional depreciation on transit mixer which is mounted on the truck chassis - HELD THAT:- Assessee primarily seeks accelerated depreciation on truck/chassis on which mixers is mounted equivalent to what is available to vehicles used for hire. It is the case of the assessee that chassis truck should be treated akin to being used in the business of running it on hire owing to composite nature of contract and consequently higher rate on depreciation at 30% should be allowed to the assessee instead of allowance at 15%. No merit in the aforesaid plea of the assessee on the ground that the assessee could not demonstrate such narrative on facts as to whether the assessee has earned any receipt towards hire of vehicle in the so-called composite contract. No evidence has been produced to justify the presence of element of receipt on account of hire of vehicle. Therefore, the contention of the assessee is abstract and cannot be endorsed. Therefore, we decline to interfere with the action of the AO on this score. Ground No.1 is accordingly dismissed. Additional depreciation on transit mixture u/s 32(1)(iia) - Alternative claim raised by the assessee accepted - The transit mixer is stated to be mounted on the chassis to enable the RMC manufactured/produced at site to be kept in the wet form for its utilization at construction plant. Therefore, transit mixer mounted on the vehicle is nothing but a plant and machinery where ancillary process is done as a continuation of manufacture/production contemplated u/s 32(1)(iia). Therefore, we wholly agree with the alternative contention of the assessee for allowability of additional depreciation on mounted mixer on first principles. However, the cost of purchase of mixer during the year requires factual examination - issue is remitted back to the file of the AO for examining the factual aspect and for determination of additional depreciation on mounted mixer. Ground No.2 is accordingly allowed for statistical purposes. Difference between income reflected in the books of account qua the 26AS - taking note of the discrepancies 26AS stood revised and difference between the books and the tax statement has been scaled down considerably - HELD THAT:- As AR pleaded that the AO should take note of the revised and corrected 26AS statement for determination of the true income of the assessee. The learned DR also fairly agreed on such contention. We find the plea of the assessee to be reasonable and fair. The issue is accordingly set aside and remitted back to the file of the AO for re-determining the income escaped assessment on this score, if any, after taking note of the revised figures embedded in the 26AS statement. The issue is accordingly restored to the file of the AO for its determination in accordance with law. Ground No.3 of the assessee's appeal is allowed for statistical purposes.
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