TMI Blog2018 (5) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... ments and manpower on hire. In view of such discussion, we find no error in the view taken by the Tribunal. Even if the assessee had used such equipments and manpower for its direct mining operations for the contract, if it was so awarded, we wonder whether that would make any difference particularly in view of CBDT Circulars No. 609 and 652 and the decision in case of I.C.D.S Limited v. Commissioner of Income-Tax & Anr. [2013 (1) TMI 344 - SUPREME COURT]. However, when this issue does not arise for direct consideration, we need not conclude the same. No error in the view taken by the Tribunal - Decided against revenue - R/TAX APPEAL No. 414 of 2018 With R/TAX APPEAL No. 415 of 2018 With R/TAX APPEAL No. 416 of 2018 With R/TAX APPEAL No. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and is engaged in the business of providing earth moving equipments on hire and undertaking mining contracts, cargo handling and transportation contracts. For the assessment year 2012-2013, the assessee filed return of income in which the assessee had claimed depreciation at a higher rate on dumpers, tripper which were used by the assessee in its business of running them on hire. The Assessing Officer disputed such a claim and called upon the assessee to justify the same. In response to the queries raised by Assessing Officer, the assessee contended that the claim of the assessee would fall under sub-item 2[ii] of Item III of Appendix I to the Income-tax Rules, 1962 which provides for higher rate of depreciation on motor buses, motor lorri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided under the contract without prior permission of the principal. The business of the assessee-firm itself was providing equipments and motor vehicles on hire. CIT [A] accepted the assessee s contention and reversed the decision of Assessing Officer, relying on the earlier decision. The Appellate Commissioner has also relied on CBDT Circular No. 652 which provides that under sub-item 2[ii] of Item III of Appendix I to the Rules, higher rate of depreciation would be admissible on motor buses, motor lorries and motor taxis used in the business of running them on hire. It was clarified that higher depreciation will also be admissible on motor lorries used in the assessee s business of transportation of goods on hire. The revenue carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery for hire for excavation of overburden; transportation of such excavated overburden minerals; transportation of minerals from mines to pit-head, stock piles or at any other place, and the transportation of overburden of minerals and excavated minerals to be done by running motor vehicles such as tippers, dumpers, etc. Essentially, therefore, the assessee was awarded contract for providing such equipments on hire. It was in this context, the assessee has highlighted that the assessee has no control over the equipments so hired and it was the principal which would decide to deploy the equipments at the appropriate place. From the material available on record though the assessee essentially was awarded contract for providing specialize ..... X X X X Extracts X X X X X X X X Extracts X X X X
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