TMI Blog2024 (4) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... arned we set aside the orders of the authorities below and decide the issue in favour of the assessee. Allowance of depreciation on Canter used for supply of goods to customers - @ 15% OR @ 30% - AO made the disallowance on the ground that the assessee was not engaged in the business of running the vehicles on hire, hence, allowed depreciation on canters @ 15% - HELD THAT:- It is undisputed that vehicles used are not hired for running but were used for assessee s own business. There is no hire income shown in the profit and loss account to reflect any hire charges received. In these circumstances, in our considered view, authorities below have passed well-reasoned order which does not require any interference on our part. Accordingly, we af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t disallowance under section 14A should be restricted to the exempt income earned. Since the exempt income earned has already been offered for tax by the assessee, no disallowance in this regard is called for. Accordingly, following the above precedent, we set aside the orders of the authorities below and decide the issue in favour of the assessee. 4. One common ground raised in both the appeals is that ld. CIT (A) has erred in confirming the disallowance of depreciation on account of allowance of depreciation @ 15% instead of depreciation claimed by the assessee @ 30% on Canter used for supply of goods to customers. 5. Brief facts of the case are that the Assessing Officer has made disallowance being excess 15% depreciation claimed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchasers to give on hire its canters to the purchasers of its goods. Also it is important to note that there is no Hire Income shown in the Profit Loss account of the appellant to reflect that Hire Charges have been received by its. Further, since no Hire charges have been paid by the purchasers of the appellants goods no TDS has been deducted on the said Hire charges. The appellant is a manufacturer of auto parts supplying goods to OEMs. It is not engaged in the business of running the vehicles on hire. The canters are not used to carry the goods of others and hence no hire charges have been derived for use of the canters. 8. We find that authorities below have passed reasonable order. It is undisputed that vehicles used are not hired for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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