Claim for Depreciation on New Trucks Rejected, Upheld by Court

The court upheld the decision to reject the claim for depreciation on new trucks purchased by the assessee for the year 1969-70. The rejection was based on the grounds that depreciation had already been considered in estimating the income from contract work, and thus, claiming depreciation separately was not justified. The court emphasized that the rejection was not due to lack of details but rather the principle that depreciation had already been factored into the overall income calculation. Consequently, the Tribunal's decision in favor of the Revenue was upheld, with costs assessed at Rs. 300.

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Issues Involved: The judgment involves the rejection of a claim for depreciation on new trucks purchased by an assessee for the year 1969-70.

Details of the Judgment:
The assessee, a private limited company, claimed depreciation on vehicles purchased, but the Income-tax Officer rejected the claim stating that full details were not furnished. The Appellate Assistant Commissioner and the Income-tax Appellate Tribunal upheld this decision, stating that depreciation had already been considered in estimating the income from contract work. The Tribunal concluded that the claim for depreciation was not justified as it had already been factored into the income calculation. The court agreed with this assessment, emphasizing that the assessee could not claim depreciation separately when it had already been accounted for in the contract work income. The court found no merit in the argument that full details were not requested by the Income-tax Officer, as the rejection was based on the principle that depreciation had already been factored into the overall income calculation. Therefore, the Tribunal's decision to reject the claim for depreciation on new trucks was upheld in favor of the Revenue, with costs assessed at Rs. 300.

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