Tribunal Upholds Disallowance of Higher Depreciation Claim for Civil Construction Vehicles

The Tribunal dismissed the appeal, upholding the disallowance of the higher depreciation claim amounting to Rs. 22,77,188 for vehicles used in civil construction work. The decision was based on legal precedents and the assessee's failure to demonstrate that the vehicles were hired out, as required for the higher depreciation rate. The Tribunal concurred with the ld. CIT (A) and various High Court decisions, concluding that the use of vehicles for civil construction work did not meet the criteria for claiming increased depreciation.

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Issues:
Claim of higher depreciation on vehicles for civil construction work.

Analysis:
The appeal was against the order of the ld. CIT (A) for the assessment year 2009-10. The assessee, engaged in civil construction work, claimed higher depreciation on dumpers, trucks, and excavator/JCB at 30%. The AO disallowed the claim stating that the vehicles were not given on hire, making the higher depreciation inapplicable. The assessee challenged this before the ld. CIT (A) reiterating the claim. The ld. CIT (A) considered the issue and referred to case laws. The High Court of Madhya Pradesh and other cases were cited, emphasizing that using vehicles for civil construction work did not qualify as hiring out for higher depreciation. The ld. CIT (A) upheld the AO's decision, disallowing the claim of higher depreciation amounting to Rs. 22,77,188. The decision was based on legal precedents and no contrary precedents were presented.

The Tribunal noted that despite repeated notices, the assessee did not appear for the hearing. The Tribunal examined the arguments of the ld. D/R and the material on record. The Tribunal concurred with the ld. CIT (A) and the legal principles cited in various High Court decisions. It was concluded that the assessee's use of vehicles for civil construction work did not meet the criteria for claiming higher depreciation. Therefore, the appeal of the assessee was dismissed, upholding the disallowance of Rs. 22,77,188. The decision was pronounced in open court on 06/06/2018.

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