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TMI Blog2018 (8) TMI 1967X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in law as well as on facts in denying depreciation @ 30% on Telescopic Crane amounting to Rs. 5,75,663 and instead allowed depreciation @ 15% despite these cranes are used in the business of running them on hire. Learned CIT(A) erred in law as well as on facts in confirming the same. 2. Learned AO erred in law as well as on facts in denying depreciation @ 30% on Rail for Tower Crane amounting to Rs. 1,04,718 and instead allowed depreciation @ 15% despite these cranes are used in the business of running them on hire. Learned CIT(A) erred in law as well as on facts in confirming the same. 3. Learned AO erred in law as well as on facts in denying depreciation @ 30% on Tower Crane amounting to Rs. 4,46,686 and instead allowed depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ". 2. On the facts and circumstances of the case, the Ld. Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of the Ld. Commissioner of Income tax (A) may be set-aside and that of the Assessing Officer be restored." 4. The brief fact of the case is that return of income declaring income of Rs. 80,64,260/- was filed on 29th Sep, 2011. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) on 15th Nov, 2013. The assessee is engaged in the business of hiring out construction material and equipment. On scrutiny, the assessing officer has noticed that assessee has claimed depreciation on cranes on higher rate @ 30%. After perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of running them on hire. The assessee has explained that hydra crane which is used on road is registered as motor vehicle and it is four wheeled pick and carry hydra crane cum transport vehicle used for picking material and shifting the same. In its submission, the assessee has mainly referred to the hydra cranes. The assessing officer has not accepted the explanation of the assessee stating that the cranes used by the assesse are not truck cranes and the same are not falling in the category of heavy motor vehicles. Consequently, he has restricted the claim of deprecation @ 15% as against the claim of deprecation of the asssessee @ 30%. 5. Aggrieved assessee has filed appeal before the ld. CIT(A). The Ld. CIT(A) has partly allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as motor or lorry or in the definition of mobile cranes as decided by Hon'ble Gujrat High Court in the case of Gujjco Carriers. Therefore, by a detailed discussion it is very clear that the appellant is mostly having those types of cranes which are not eligible of higher depreciation as is evident from the discussion in above paragraphs they can be termed as plant and machinery hence they are eligible for depreciation @15%. The appellant also furnished copies of RC booklets (issued by RTO) in relation to 4 Cranes registered with RTO namely GJ-10K- 3271, GJ-10K-2864, GJ-10K-2863 and GJ-10K-2581. All the RC booklets showed that these cranes had been purchased in F.Y. 2004-05. In its submission, the appellant referred only to Hydra crane ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thra Shipping Services vs. CIT-XII, Kolkatta (2010) 8 taxman.com 62(Kol) dated 16th July, 2010. On the other hand, ld. departmental representative has vehemently supported the order of assessing officer and also contended that ld. CIT(A) is not right in allowing depreciation @ 30% on hydra crane without considering the detailed finding of assessing officer. 7. We have heard the rival contentions and perused the material on record carefully. As per profit and loss account for the year 31st March, 2011 the assessee has shown income from machine hiring during the year under consideration. Out of total income of Rs. 17,17,92,943/-, assessee has shown hiring income of Rs. 2,10,04,957/- from air compressor, cranes, DG set, Geni, hydra crane, boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy motor vehicle and was an integral part of motor vehicles on which it was mounted and it was registered as heavy motor vehicles and that crane was used for lifting and moving goods. Mobile crane was also registered with RTO as heavy motor vehicle which was mounted on a truck. It was held in the above cited case that lorry or truck would mean not only any motor vehicle designed to carry freight or goods but also to perform said services like fire fighting, therefore, a truck adopted or designed to carry a crane is mounted for such services on lifting load, moving it side by side, rotating it or moving it horizontally. Similarly the CBDT Instruction No.617 refer to folk lifting truck of higher rate of deprecation. On the perusal of the find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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