Tribunal grants 30% depreciation on trucks and dumpers, dismisses challenge.

The Tribunal allowed the appeal, granting 30% depreciation on trucks and dumpers, dismissing the challenge to the validity of the assessment reopening as academic. The decision was based on the assets being part of the 30% block of assets and ready for hire business. The order was pronounced on 13.02.2019, with other grounds not requiring adjudication.

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Issues:
1. Validity of reopening the assessment under section 147 of the Income Tax Act.
2. Disallowance of depreciation on trucks and dumpers at 15% instead of 30%.

Analysis:

Issue 1: Validity of reopening the assessment under section 147 of the Income Tax Act
The appeal was filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Appeals)-II, challenging the reopening of the assessment under section 147 of the Income Tax Act. The Ld. CIT(A) dismissed the assessee's ground challenging the reopening of assessment. The Tribunal found that since the disallowance of depreciation was deleted, the challenge to the validity of the reopening became academic. Thus, Ground No.1 was dismissed as academic.

Issue 2: Disallowance of depreciation on trucks and dumpers at 15% instead of 30%
The main issue in this appeal was the disallowance of depreciation on trucks and dumpers at 15% instead of 30%. The assessee contended that the trucks and dumpers were ready to use for hire business, even though they were not hired during the year under appeal. The Tribunal referred to a previous decision in the assessee's own case for Assessment Year 2009-10, where a similar issue was decided in favor of the assessee. The Tribunal held that the assets were part of the 30% block of assets and were ready to use for hiring business. Referring to relevant legal provisions and precedents, the Tribunal allowed the assessee's claim for 30% depreciation on the trucks and dumpers. Ground No.2 of the assessee was allowed based on this analysis.

In conclusion, the Tribunal allowed the appeal of the assessee, granting 30% depreciation on the trucks and dumpers. The order was pronounced on 13.02.2019, with the Tribunal dismissing Ground No.1 as academic and Ground No.3 being of a general nature not requiring adjudication.

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