TMI Blog2019 (2) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 19,48,988/- in the audited statement attached with Form 3CA of the Tax Audit Report. Depreciation is eligible on assets which are ready for use and which are already used immaterial of the fact that such assets were used in the year or not” - thus the assessee is entitled for 30% depreciation on the WDV of trucks and dumpers which are purchased as commercial vehicle and consistently used in the running of hiring. Thus Ground of the assessee stands allowed. - ITA No.723/Ind/2017 - - - Dated:- 13-2-2019 - MR KUL BHARAT, JUDICIAL MEMBER AND MR MANISH BORAD, ACCOUNTANT MEMBER For The Revenue : Shri Rajeeb Jain, Sr.D.R For The Assessee : Shri S.N. Agrawal Pankaj Mogra, CA s ORDER PER MANISH BORAD, AM. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llenging the reopening of assessment u/s 147 of the Act and also confirmed the disallowance. 4. Now the assessee is in appeal before the Tribunal raising following grounds of appeal; 1.1] That on the facts and in the circumstances of the case the Ld CIT (A) grossly erred in maintaining the act of A.O. in respect of issuance of notice u/s 148 of the Act and framing assessment on the basis of such notice even when no new fact has came to the knowledge of the A.O. on the basis of which it can be presumed that any income chargeable to tax has escaped assessment. The notice so issued and assessment framed thereon in absence of any tangible material in possession of the assessing officer therefore requires to be quashed. 1.2] That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning on hire and they were appearing in the 30% block of assets. During the year under appeal these trucks and dumpers were not hired as the agreement with ONGC came to end but all the trucks and dumpers were ready to use and therefore the depreciation is allowable on assets which are ready to use, immaterial of the fact that they were used in the year or not. 6. Per contra Ld. Departmental Representative vehemently argued supporting the orders of lower authorities. 7. We have heard rival contentions and perused the records placed before us. The assessee apart from challenging the reopening of the assessment by issuance of notice u/s 148 of the Act has also challenged the disallowance of depreciation on trucks and dumpers. As contende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rate of depreciation in respect of Motor, buses, etc. used in the business of running them on hire is prescribed @ 30%. After reading the connected Rule 15 and Appendix-I, we have noted that the requirement is that the vehicle in question is to be used in a business of running them on hire. The expression used in all the places as referred supra do not suggest that the corresponding hiring income should have been shown in assessment year in which the higher rate of depreciation is claimed. Rather peculiar fact of this case is that the hiring receipts have actually been shown in the subsequent assessment year and admittedly not shown in the year under consideration due to lack of information supplied by the said concern using those vehicl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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