TMI Blog2015 (7) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... refers to the contract receipt as one "for letting out lorries on hire". When they themselves admit that the petitioner firm was "letting out lorries on hire" the petitioner firm comes under Clause III(3)(ii) of Appendix I to the Income Tax Rules and is entitled to depreciation allowance @ 30%, It was engaged in the business of hiring trucks and those trucks cannot be treated as 'motor vehicles other than those used in the business of running them on hire' so as to limit the depreciation allowance to 15%. Thus it is declared that the petitioner will get the benefit of depreciation allowance at the rate of 30% . - Decided in favour of assessee. - WP (C). No. 15013 of 2012 (B) - - - Dated:- 25-6-2015 - P. V. Asha,J. For the Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner before the Commissioner was also that the petitioner was engaged in the business of letting out lorries and therefore depreciation allowance at the rate of 30% should have been allowed. However, the Commissioner of Income-tax (Appeals), without going into the contentions, held that the finding of the Assessing Officer is correct. Petitioner has filed this Writ Petition aggrieved by these orders claiming depreciation allowance in terms of Appendix 1 2(ii) under the Income Tax Rules. 4. The respondents have filed a statement stating that the firm was engaged in the business of letting out lorries and the main source of income was the contract receipts from M/S KSE Ltd. Irinjalakuda and the TDS certificate issued by M/s KSE Ltd. sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Palakkad 33 1 Rs.180.00 2 Swaminathapuram Iringalakuda 165 2 Rs.250.00 3 Swaminathapuram Vedagiri 274 6 Rs.365.00 4 Swaminathapuram Kozhikode 220 3 Rs.390.00 It was further stated that the number of trucks indicated may increase or decrease depending upon the production and market conditions. 7. Appendix 1 under Rule 5 of the Income Tax Rules provide for the rates of depreciation allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, only because of the TDS certificate in which the nature of payment was shown as payment to contractor and not as hire charges. The contention of the learned Standing counsel is that Ext.P1 agreement provides for the rate of charges for the vehicles per metric tonne, whereas the usual procedure is to show the charges at the rate per kilo metre. But there is no provision which provides that the hire charges for vehicles should be provided per kilometer or that it cannot be provided depending upon the capacity of the vehicle i.e per metric tonne. 9. Merely on the basis of the TDS certificate furnished by M/s KSE Ltd. and the hire charges received per metric tonne, the claim of petitioner should not have been rejected. It is pertinent to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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