9911796707
TMI Blog2002 (9) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... nly on April 1, 1992, the assessee is entitled to depreciation for the assessment year 1992-93? 2. Whether, on the facts and in the circumstances of the case and in view of the fact that registration for operating as a contract carriage was obtained on May 5, 1992, is not depreciation admissible only from the assessment year 1993-94?" The facts on record are that the assessee purchased a vehicle and took delivery of the same on March 30, 1992. There was a temporary registration obtained in respect of the vehicle as KL-7/2169/92-E valid up to April 24, 1992. This enabled the assessee to take the vehicle from Ernakulam to Thiruvananthapuram. The assessee also applied for registration as a non-transport vehicle on March 30, 1992, and the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 34, for, the only ground on which the Assessing Officer has disallowed depreciation is that the assessee had not used or kept ready for use the vehicle at any time prior to March 31, 1992. So the only question for consideration is as to whether the assessee had used the vehicle or kept ready for use the vehicle on any day during the previous year relevant to the assessment year 1992-93. Admittedly, the assessee took delivery of the vehicle on March 30,1992, and the vehicle was taken from Ernakulam to Thiruvananthapuram on the basis of a temporary permit valid up to April 24, 1992. The assessee got registration as a non-transport vehicle on April 3, 1992, with retrospective effect from March 3D, 1992. The assessee had applied for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Going by the provisions of the Motor Vehicles Act, 1988, sections 2(7) and (35), 66, 72, 73 and 74 we are of the view that in order to say that the vehicle was kept ready for use for carrying persons for hire the vehicle must be registered as a contract carriage and it is only on obtaining the contract carriage permit that it can be said that the vehicle was kept ready for use. Since the contract carriage permit was obtained for the vehicle only on May 5, 1992, it cannot be said legally that the vehicle was kept ready for use on or before March 31, 1992. We accordingly answer the two questions against the assessee and in favour of the Revenue. In the above circumstances, we are of the view that the Tribunal has committed a serious error ..... X X X X Extracts X X X X X X X X Extracts X X X X
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