TMI Blog2024 (2) TMI 1236X X X X Extracts X X X X X X X X Extracts X X X X ..... depreciation thereon cannot be denied; more so, the interest on car loan and car insurance was allowed by the department. Thus, we find that the appellant s case is squarely covered in the case of PCIT vs. Asian Mills (P.) Ltd. [ 2021 (12) TMI 365 - GUJARAT HIGH COURT] following the judgment passed in the case of Mysore Minerals Ltd [ 1999 (9) TMI 1 - SUPREME COURT] we allow depreciation in accordance with law. Appeal of assessee is allowed. - Shri Waseem Ahmed, Accountant Member And Ms. Madhumita Roy, Judicial Member For the Appellant : Shri Vihar Soni, AR For the Respondent : Shri Vipul Chavda, Sr. DR ORDER PER Ms. MADHUMITA ROY - JM: The instant appeal filed at the instance of the assessee is directed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Authority. Hence, the instant appeal before us. 5. Before the First Appellate Authority, it was submitted by the appellant that the new car was registered in the name of the Director of the company but the funds were utilized of the company and the same was shown as asset in the financial statement of the company. In that view of the matter, for all practical purposes, the company is the owner of the vehicle and has dominion over the vehicle and, thus, depreciation was rightly claimed. The vehicle is further being used wholly and exclusively for the purpose of the business of the appellant company and denial of depreciation, therefore, was unwarranted in the facts and circumstances of the case. He further relied upon the judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the following observations: 15. The CIT(Appeals) held in favour of the assessee by holding thus: 20. Aggrieved assessee preferred an appeal before the learned CIT(A) who allowed the appeal of the assessee by observing as under: Having considered the facts of the case I am inclined to accept the contentions of the Ld.A.R. as admitted by the A.O himself the funds for purchase of the car were provided by the appellant. The Hon ble Supreme Court in the case of Mysore Minerals Ltd. vs. C.I.T 239 ITR 775(S.C.) has held that the section of the I.T.Act, 1961, confers a benefit of the assessee. The provision should be so interpreted and the words used therein should be assigned such meaning as would enable the assessee to secure the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi, 170 Taxman 407(MP), 187 Taxman 442 (Mad), 201 Taxman 666 ( P H), 198 Taxman 470 199 Taxman 273 are in favour of the appellant. 16. The Revenue challenged the same before the Tribunal. It also relied on the decision of ITO vs. Electro Ferro Alloys Ltd. in ITA No.2773/Ahd/2009 reported in 25 taxmann.com 458. According to the ITAT, the material available on record, when looked at, the assessee though was not the legal owner of the vehicle, it has made the payment for acquisition of cars and thus, it is a beneficial owner. It is, therefore, held to be entitled for depreciation on the car. It has drawn the support from the decision of ITO vs. Electro Ferr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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