Tribunal grants 50% depreciation claim for business motor car purchase

The Tribunal allowed the appeal, granting the assessee the depreciation claim at 50% for a motor car purchased for business purposes, amounting to Rs. 24,80,124. The Tribunal found that the motor car qualified as a commercial vehicle under the Income Tax Rules, supported by judgments from Coordinate Bench cases. The Revenue's denial of the 50% depreciation claim was overturned, with the Tribunal ruling in favor of the assessee based on the precedents and arguments presented during the hearing.

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Issues:
Depreciation claim on a motor car at 50% denied by Revenue, Coordinate Bench judgments favoring the assessee.

Analysis:
1. The appeal concerned the denial of a depreciation claim on a motor car at 50%, with only 15% allowed by the Revenue for Assessment Year 2010-11.
2. The assessee argued that the claim was based on a special insertion of rate for "Commercial Vehicle," citing judgments by the Coordinate Bench supporting their stance.
3. The Ld. DR failed to counter the submissions made by the assessee during the hearing.
4. The Tribunal considered the judgment in the matter of Shree Balaji Products vs. ITO, where the Coordinate Bench allowed the appeal and deleted the disallowance made by the AO.
5. Additionally, the judgment in the matter of Cipriani Harrison Valves Pvt. Ltd. vs. JCIT was referenced, supporting the claim of depreciation at 50% for a motor car purchased for business purposes.
6. The Tribunal found that the motor car purchased by the assessee qualified as a commercial vehicle as per the Income Tax Rules, entitling the assessee to claim depreciation at 50%.
7. Relying on the decisions of the Coordinate Bench, the Tribunal allowed the appeal, granting the assessee the depreciation claim at 50% amounting to Rs. 24,80,124.
8. Consequently, the appeal of the assessee was allowed, and the judgment was pronounced in Open Court on 22/04/2021.

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