TMI Blog2011 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... on to an amount other than as claimed by the assessee, in such circumstances, it is held that the assessee was entitled to deduction of Rs. 2,000/- per vehicle. - Decided in favor of assessee. - Income Tax Appeal No. 167 of 2002 - - - Dated:- 8-11-2011 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Pankaj Jain, Advocate for the appellant. Mr. I.P. Singh, Advocate for the respondent. AJAY KUMAR MITTAL, J. This order will dispose of Income Tax Appeal Nos. 167 and 168 of 2002, 22, 23 and 24 of 2003 as the substantial question of law is common in all these appeals. The facts have, however, been taken from Income-tax Appeal No. 167 of 2002. 2. This appeal under Section 260A of the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the repair is to be allowed as a deduction and not depreciation on the building? 4. At the outset, it may be noticed that the learned counsel for the assessee stated that question No.2 was not being pressed by him and so far as question No.3 is concerned, the same does not arise from the impugned order of the Tribunal. Accordingly, both the questions are declined. 5. Briefly stated, the facts of the case necessary for adjudication of question No.1 pertaining to assessment year 1990-91 are that the assessee-company is a Government of Haryana Undertaking at Gurgaon and is involved in fabricating the body of buses and bringing them in the final shape for use by Haryana Roadways. So far as the Chassis of the buses are concerned, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed in 4 more years in equal instalments. 6. The assessee preferred appeal before the Commissioner of Income Tax (Appeals), [for short CIT(A) ]. The CIT(A) observedthat Rs. 2,000/- per bus for removing the defects was excessive and consequently held that a lump sum amount of Rs. 750/- per bus for five years should be allowed as deduction from the sale price and it should not be spread over a period of five years for any postmanufacturing defects immediately found out on supply. The CIT(A), thus, restricted the deduction to Rs. 750/- per bus for all the five years which according to the appellant amounted to enhancement of income and for which no notice had been given as required under the Act. 7. The matter did not rest here and we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to the assessment year in question. 11. It may be noticed that initially agreement dated 18.10.1988 was entered between the appellant and the Government of Haryana i.e. the Haryana Roadways. Subsequently, agreement dated 20.3.1993 was executed as the earlier agreement dated 8.2.1988 was not practicable. This agreement was effective from 1.4.1989. Clause 5 of the said agreement, which is relevant for the present decision, reads thus:- 5) a. That the party of the second part shall give any guarantee/warranty as per its normal conditions of manufacture and the expenses for its rectifications, amendments or repairs shall be borne by the second party. b. The delivery of vehicles shall be at respective places as per plan and any e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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