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2020 (8) TMI 598 - ITAT CUTTACKAdditional depreciation on certain assets/machineries - whether the assets are registered as a commercial vehicle or private vehicles/assets? - HELD THAT:- Assessee was required to obtain registration from some assets as is clear from the picture of the assets showing in the assessment order but the assessee also did not produce any registration certificate before us as to whether the assets are registered as a commercial vehicle or private vehicles/assets. It is also clear from the Appendix Part-A(III) regarding depreciation the assessee is eligible for additional depreciation on the motor cars, motor lorries but the AO has disallowed higher depreciation claimed by the assessee on other assets which are not covered under the motor car, motor vehicles as defined above as per the Motor Vehicles Act as amended. He is entitled for additional depreciation only on those vehicles which were used for running them on hire but the assessee also unable to demonstrate that the which assets were used in the hire completely. The assessee is engaged in the civil construction business and he has achieved huge turnover but without using of these heavy/light machineries/vehicles huge turnover cannot be achieved. If the assessee uses partly for own use and for hire charges he is not entitled to claim excess depreciation as per the provisions of the Income Tax Act. The rule for charging higher depreciation has been prescribed only for the vehicles which are running on hire. Respectfully following the above judgment of ANUPCHAND AND CO. [1999 (6) TMI 25 - MADHYA PRADESH HIGH COURT] the assessee is not eligible/entitled for the claim of excess depreciation on impugned 14 items as mentioned by the AO in his order. In the peculiar facts and circumstances of the case, the case laws and circular relied on assessee are not applicable in the present case in hand but the case laws cited by the ld. CIT-DR support the case to the extent of their applicability in the present case. - Decided against assessee.
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