Higher depreciation on commercial vehicle upheld for HUF where business use and notification conditions were satisfied.

An HUF was treated as eligible for higher depreciation of 50% on a vehicle claimed as a commercial vehicle under Notification No. 10/2009 dated 19.1.2009. The notification applied to new commercial vehicles acquired within the specified period and used for business or profession, and its benefit was extended to individuals; the HUF was covered within that expression. The assessee's assertion that the vehicle was used for business purposes was not controverted by the Revenue, and the remaining conditions for the enhanced rate were found satisfied. The depreciation claim was therefore allowed.

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Issues: Whether the assessee-HUF was entitled to depreciation at 50% on a vehicle claimed to be a commercial vehicle under Notification No. 10/2009 dated 19.1.2009.

Analysis: The notification granted higher depreciation to new commercial vehicles acquired within the specified period and put to use for business or profession. It also extended the benefit to individuals, and the assessee-HUF was treated as falling within that expression. The vehicle was claimed to have been used for business purposes, and that assertion was not controverted by the Revenue. The remaining conditions for the higher rate of depreciation were also found to be satisfied.

Conclusion: The assessee was held entitled to higher depreciation at 50% on the vehicle, and the claim was allowed.

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