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2020 (1) TMI 769 - AT - Income TaxHigher rate of Deprecation on vehicles used in the business of promotional activities in rural markets of India - @30% or 15% - HELD THAT:- It is obvious from a perusal of the bare provisions in law that the normal rate of depreciation on vehicles is 15% as per Part A of S.No.III(2) of New Appendix I. The higher rate of 30% is admissible to an assessee, under S.No.III(3)(ii) of Part A of New Appendix I only if the vehicles are used in the business of running them on hire. Before us, it was admitted by the learned AR of the assessee that the business of the assessee is rural marketing, promotions, roadshows, display advertising etc. and that the assessee is not in the business of running the vehicles on hire. We are not persuaded by the contention raised on behalf of the assessee that the assessee is eligible for higher rate of depreciation at the rate of 30%. Merely because the invoices raised by the assessee include, inter alia, charges for running of vehicles, does not mean that the assessee is in the business of running the vehicles on hire. The fact remains that the vehicles are used by the assessee in the assessee's business of rural marketing, promotions, roadshows, display advertising etc. and that the assessee is not in the business of running the vehicles on hire. See GUPTA GLOBAL EXIM (P) LTD. [2008 (5) TMI 7 - SUPREME COURT] - Decided against assessee.
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