TMI Blog2002 (11) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... s and when to be used. Thus, all the cars were used by the appellant all the year round. The disallowance of the depreciation on two cars is therefore, unjustified in the facts and circumstances of the case. That the ITO erred in disallowing the depreciation merely because no log-book was maintained. The cars are owners driven or by the driver for the use of the owner mostly in the city for daily professional work and very small use was outside the city. The cars remained in the control of the owner even when driven by the driver. In the circumstances, the disallowance of the depreciation on the basis that no log book was maintained is unjustified. Without prejudice to the above, it is further submitted that the depreciation allowed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then depreciation could have been allowed. It is also argued that in earlier years, depreciation on two cars was allowed. The learned counsel also placed reliance on the decision of Hon'ble Delhi High Court in the case of Capital Bus Service (P) Ltd. vs. CIT (1980) 17 CTR (Del) 155 : (1980) 123 ITR 404 (Del). 2.3 On the other hand, the learned Departmental Representative argued that in the circumstances when the assessee is claiming depreciation on all the cars, then log-book necessarily be maintained. All the cars owned by the assessee cannot be used for the professional purposes. Because being a senior advocate, the family members cannot walk on foot or travel by hiring taxies. It is further argued by the learned Departmental Represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for being run on contract basis on temporary permits such as for marriages, private tours and the like. On account of lack of demand, those buses were not actually employed by the assessee for more than 30 days in the previous year ending 31st March, 1961, relevant to the asst. yr. 1961-62. In that case, the Hon'ble High Court has held that buses were kept ready for operation and they were there only in the business and for use in that business. The buses were used for the purposes of the business throughout the year though they were not actually plied on the roads for more than 30 days, and the assessee was entitled to grant of normal depreciation in respect of the four buses. 3.1 On the other hand, reliance placed by the learned Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery being actually used or employed in the earning of income. In the instant case, all the three cars cannot be used for professional purposes and the possibility of using the car by the family members cannot be ruled out. If the assessee wants to claim depreciation on all the three cars, then he should at least maintain log books for all the three cars to prove that all the three cars were used for professional purposes. But no log book was maintained by the assessee. Therefore, having regard to the position of the assessee being a Senior Advocate of Supreme Court, depreciation on one car was allowed by the AO. Therefore, having regard to the above facts and circumstances and the decision of Hon'ble Madhya Pradesh High Court, we decline to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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