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2015 (7) TMI 442 - ITAT DELHI

2015 (7) TMI 442 - ITAT DELHI - TMI - Disallowance of depreciation - Depreciation @40% or 15% - Held that:- The material fact that the lorries were used in assessee’s own business and had never been hired clearly clinches the issue against the assessee - In view of the clear legislative mandate which permits higher depreciation only to vehicles which were given out on hire, the claim has rightly been rejected by the CIT(A). - Following decision of CIT vs Varindra Construction Company [2012 (4) T .....

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Tax (Appeals) is bad both on law and facts. 2. That proceedings u/s 154 of the Income Tax Act are bad both in law as well as on facts. 3. That the learned Commissioner of Income Tax (Appeals) has erred in sustaining an addition of a sum of ₹ 17,33,317/- alleged to be excess depreciation claimed during the year under appeal. The basis of such calculation has not been elaborated in the order of assessment." 2. At the time of hearing the Ld. AR sought an adjournment however considering t .....

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tly was taken up at the end of the Board. 3. The relevant facts of the case are that in the case of the assessee the AO passed an order u/s 154 of the Income Tax Act, 1961 on 10.02.2012. The AO took cognizance of the fact that the assessment in the case of the assessee was completed at an income of ₹ 14,95,882/- wherein audit scrutiny revealed that depreciation amounting to ₹ 27,73,307/- on tankers in the year under consideration was claimed @40% as opposed to the prescribed rate of .....

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#39;s business is of trading nature and is transporting the goods in the same way as being used for hiring form outside for transportation of goods for the business of assessee. The assessee has relied on the judgement in the cases of CIT Vs. Bansal Credits Ltd. 2003. However on perusal of the above said case, it was found that this judgment is applicable in cases where assessee is engaged in the business of running vehicles on hire or commercial vehicle leased out. In these cases the higher rat .....

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Constructions case (supra), Hon'ble Guwahati High Court In ABC India Ltd. case (supra) and Hon'ble Madras High Court in Madan & Companies case (supra). In view of the above facts, the assessee is entitled to claim the depreciation @ 15% only. The mistake is apparent from the records and therefore, hereby rectified u/s 154 of the IT Act. With this observation, the revised Income of the assessee is recomputed as under:- Income ₹ 14,95,882/- Add:- Excess depreciation allowed ͅ .....

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ned. Reliance yet again was placed upon the judgement of the Jurisdictional High Court in the case of Bansal Credits Ltd. (2003) 259 ITR 0069 (Del). 5. Not convinced with the explanation offered the CIT(A) upheld the rectification order passed u/s 154. 6. Aggrieved by this the assessee is in appeal before the Tribunal. 7. The Ld. AR reiterated the submissions made before the tax authorities. However he was unable to assail the finding of fact that the tankers owned by the assessee were used in i .....

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quent year cannot be accepted as in taxation matters each assessment year is a separate assessment and the principles of res judicata do not apply. The material fact that the lorries were used in assessee s own business and had never been hired clearly clinches the issue against the assessee and the reliance placed upon the decision of the Delhi High Court in the case of Bansal Credits Ltd. (cited supra) being distinguishable on facts does not help the assessee in any manner. The arguments advan .....

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