TMI Blog2021 (4) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... s. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 08.03.2018 passed by the Commissioner of Income Tax (Appeals) 6, Ahmedabad arising out of the order dated 16.06.2014 passed by the ACIT, Circle-1, Bhavnagar under Section 154 of the Income Tax Act, 1961 (hereinafter referred as to the Act ) for Assessment Year 2010-11. 2. The issue relates to depreciation on claim of ₹ 24,80,124/- @50% wherein 15% has been allowed by the Revenue. 3. At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee submitted before us that the assessee purchased a motor car amounting to ₹ 49,60,247/- in the year under consideration and has put to use before October ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules by Income Tax (Third Amendment) Rules, 2009 and new Appendix has been introduced. The ld.CIT(A) made reference to Notification no.10/2009 dated 19.12.2009 and also para-6 of the said notification which gives definition of commercial vehicle. I have examined this notification available on page no. 1.426 of Income Tax Rules (3rd Edition) of Taxman i.e. 2016 edition. Paragraph-6 contemplates definition of commercial vehicle . This paragraph is available at page no.1.433 of the Taxmann s Income Tax Rules. I find it is verbatim same as considered by the ITAT, Mumbai. There is no such condition that vehicle would qualify as commercial vehicles when licensed to be used as public transport. For facility of reference, I take note of this a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed as per the CBDT Circular No.10/2009 dated 19.01.2009. Ld. Counsel further referred to Appendix-I (See Rule 5) relating to rates of depreciation appearing in page 17 of the paper-book which specifies that if a new commercial vehicle which is acquired on or after the first day of January 2009, but before the first day of April 2009, and is put to use before first day of April 2009 for the purposes of business or profession , then the assessee would be eligible to claim deprecation @ 50% of the written down value. Ld. Counsel also referred to the definition of commercial vehicle appearing at page 18 of the paper-book, as per which, commercial vehicle means heavy goods vehicle , heavy passenger motor vehicle , light motor vehicle , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation is admissible in Part A relating to Tangible Assets at III. Machinery and Plant . Under this head at (3)(via) reads that new commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of October, 2009 and is put to use before the 1st day of October, 2009 for the purposes of business or profession , depreciation will be admissible @ 50%. 9. Further, commercial vehicle has been defined at note No.6 of Part A of the New Appendix I, which defines commercial vehicle as heavy goods vehicle , heavy passenger motor vehicle , light motor vehicle , medium goods vehicle and medium passenger motor vehicle but does not include maxi-cab , motor-cab , tractor and road-roller . We furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2009 (supra) would cover only trucks and other heavy vehicles and not a motor car. The CIT(A) has also affirmed the aforesaid stand of the AO, against which assessee is in appeal before us. 9. In this context, the learned Representative for the assessee submitted that the objection of the IT authorities that a motor car does not amount to a commercial vehicle is misconceived having regard to the Depreciation Table annexed to the IT Rules, 1962. In this context, it is noted that r. 5(1) of the IT Rules, 1962 (in short 'the Rules') prescribes that the depreciation allowance is to be calculated at the percentages specified in the table in Appendix-I thereof. The contents of the Table so far as they are relevant for our purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee succeeds for statistical purposes. 10. Respectfully following the decision of Co-ordinate Bench, and, in view of our discussion above, we are of the view that assessee should be allowed the claim of depreciation @ 50% on the WDV as on 01.04.2009 of motor car purchased for business purposes on 28.03.2009. In the result, this ground of assessee is allowed. Hence, respectfully relying upon the orders passed by the Coordinate Bench we decide the issue in favour of the assessee; the assessee is entitled to depreciation @50% amounting of ₹ 24,80,124/- as claimed. Hence, the appeal is allowed. 7. In the result, the appeal of the assessee is allowed. This Order pronounced in Open Court on 22/04/2021. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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