TMI Blog2012 (9) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... port aided by flight, (such as balloons, planes etc.) within the Depreciation Rule. For the reasons best known, the rule making authority confined and narrowed definition to “aeroplane”. This conclusion is also supported by the fact that other entries in Rule III(3) of the depreciation table extend to entire vehicles such as commercially pliable buses, cars etc. They do not confine the scope of depreciation only to parts of such vehicles - as aircraft owned by the assessee has fixed wings and has the characteristics of the aeroplane though it may be of a smaller capacity which is able to fly only nine passengers on board the aircraft owned by the assessee cannot be thrown out of the category of "aeroplane" and to be considered only as "Plant and Manchinery" which is a term distinct to such type of aircraft - Thus in view of the above discussion the Tribunal‟s judgment does not disclose any error as regards interpretation of Entry III(3)(i) of the Depreciation Rules and its upholding the depreciation allowable in the present case to the tune of 40% cannot be termed as unjustified or unwarranted - in favour of assessee. Claim of cash payment as deductible expenditure under R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for short) held that depreciation granted to the extent of 40% on account of its acquiring "Beechcraft Super King Air B-200C‟ was wrongly granted and the correct depreciation ought to have been 20%. In respect of this and the other items such as the disallowance under Section 14A (expenditure claimed) as well as the amount under Section 40A(3), the assessee felt aggrieved and approached the Income Tax Appellate Tribunal ("Tribunal‟, for short). 4. So far as the first question, i.e., applicability of Section 14A is concerned, this Court is of the opinion that the law having been declared in Maxopp Investment Limited v. CIT; 2012 (247)CTR 162 (Del), the matter has to be remitted. The Tribunal‟s decision to that extent is upheld. The Assessing Officer shall take into consideration the direction in Maxopp (supra) while carrying out the directions of the Tribunal. 5. So far as the second question regarding the correct rate applicable for depreciation of Aircraft is concerned, the counsel for the revenue urged that till 1987- 88 the relevant entry read as follows: D(1) Aeroplanes Aircraft, aerial photographic apparatus (NESA) - 30% E(1) Aeroplanes-Aero engines ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) describe the rate of depreciation of aero engines. As the assessee was admittedly claiming depreciation on aircraft, it was held that it will fall under item D(1) which have specific one and, therefore, the assessee will be entitled for depreciation @ 30% and the depreciation @ 40% is applicable only on aero engines and the aero engines is not covered under aircrafts. But the position under the Appendix-I which is applicable in the case of the assessee is different. In the present case, there is no such classification under the head "aeroplanes‟as it was applicable in the case of the CIT vs. Kirlosker Oil Engines (supra). During the year under consideration, only one description is there which is in item 3 which read as under:- Aeroplane-aeroengines 13. No other separate head has been given for claiming of depreciation under the head "aeroplanes‟which was distinctively described in the old Appendix as applicable in the case of the CIT vs. Kirlosker Oil Engines (supra). 8. The Tribunal then discussed the different meanings of the expression "aircraft and air-plane‟ in the ensuing part of its order. 16. It is so, then the description of depreciation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of all these definitions will be that aeroplane in comparison to aircraft has a fixed wings and is powered by propellers or jets. Though both the definitions have been given by the ld. CIT in his order, but he has ignored the submission of the assessee that aircraft owned by it has fixed wings and is powered by propellers or jets on the ground that it should be heavier than the aircraft. We find no justification in such observations of ld. CIT that the aircraft of the assessee should not be described as "aeroplane‟simply for the reason that "aeroplane‟is a machine much bigger, heavier and powerful than an aircraft which travels in the air more than an aircraft. Though technical details have not been furnished before us, but, it is clear from the picture submitted to us that the aircraft owned by the assessee has fixed wings and has the characteristics of the aeroplane though it may be of a smaller capacity which is able to fly only nine passengers on board. But, for that reason the aircraft owned by the assessee cannot be thrown out of the category of "aeroplane‟and the aircraft owned by the assessee cannot be considered only as "Plant and Manchinery‟whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n view of the above discussion, this Court is satisfied that the Tribunal‟s judgment does not disclose any error as regards interpretation of Entry III(3)(i) of the Depreciation Rules. Its upholding the depreciation allowable in the present case to the tune of 40% cannot be termed as unjustified or unwarranted. 11. On the third issue, the Tribunal concluded that the charges payable and claimed by the assessee were in respect of the route navigational and parking charges for an aircraft required by Airport Authority of India. The relevant procedure was outlined through a letter dated 22.12.2009 written by the Airport Authority of India which stated that as per Rules of RNFC (Route Navigation Facilities Charges) and TNLC (Traffic) (Terminal Navigation landing Charges) charges with AAI and DIAL are to be paid in cash before the departure of a non scheduled flight. Therefore, the revenue had urged that this payment, though supported by the facts of the case do not fall within the Rule 6DD(k) which allows expenditure in cash only when it is made by a person to an agent who is required to make payment in cash . 12. The revenue stressed upon the fact that cash was not paid to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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