TaxTMI 
TaxTMI 
2006 (10) TMI 262
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 3. First we shall take up assessee's appeal in ITA No. 4059/M/04 which is directed against the order of the ld. CIT(A), Thane dated 15-3-2004 and it pertains to the assessment year 1999-2000. 4. In this appeal ground Nos. 1 to 3 are in respect of rate of depreciation for the use of car whereas ground No. 4 is regarding the validity of reopening of assessment under section 147 of the Act. Since no arguments were made in respect of ground No. 1, it is presumed to be not pressed. Hence same is dismissed as not pressed. 5. The facts in brief are that the assessee purchased a motor car between the period from 1-10-1998 to 31-3-1999. This car was used by the assessee for his business of civil construction. The assessee claimed the depr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the same in the Income-tax Act was relevant and only to be considered. It was also pointed out that the words "commercial vehicle" was not defined in the Motor Vehicles Act, 1988, nor in any registration certificate issued by the RTO these words were used, hence the report of the RTO to this effect was not relevant and consequently reliance placed by the revenue authorities thereon was also misplaced. The ld. counsel also stated that in the report of the RTO no such specific certificate was given though the same was not available with him at that time. The ld. counsel then referred to the relevant clause of Appendix-I and also note thereto defining the term "commercial vehicle". The ld. counsel also referred to the Explanation to third prov....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the same was to remain under the same entry till it was used for the purpose of business and for that duration the assessee was entitled to depreciation at the rate specified for that entry only. 7. The ld. AR, on the other hand, placed strong reliance on the order of the revenue authority. We have considered the submissions made by both the sides, material on record, orders of authorities below and applicable legal provisions. The interesting question which has arisen before us is regarding the rate of depreciation applicable to motor car acquired between 2-10-1998 and 31-3-1999 and if the same has been put to use between the same period for the purpose of business of the assessee. As far as use of the car acquired by the assessee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purpose of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 (see Note 3A below the Table) '3A. "commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" but does not include "maxi-cab", "Motor-cab", "tractor" and "road-roller". The expressions "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle", "medium passenger motor vehicle", "maxi-cab", "motor-cab", "tractor" and "road-roller" shall have the meanings respectively as assigned to them i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing commercial vehicle acquired between 2-10-1998 and 31-3-1999, the depreciation has to be allowed on such percentage on the written down value thereof as may be prescribed. As per the provisions of section 43(6)(c)(ii ). W.D.V. means the written down value of that block of asset as increased by the actual cost of any asset falling within that block acquired during the previous year and as reduced by the monies payable together with scrap value if any in respect of the assets falling within that block which are sold or discarded or demolished or destroyed during that previous year. However, for our purpose the material provision is that the actual cost of the asset so acquired would fall within that block in the year of acquisition and the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Rules. This conclusion further leads to an interference that the Legislature has given benefit of higher depreciation to the assessees not engaged in the business of Motor Buses, Motor Lorries and Motor Taxies on hire and defining such light motor vehicles as commercial vehicles though intentionally excluding vehicles commercially exploited for yielding income from the definition of commercial vehicle further supports the case of the assessee. We also find sufficient force in the contention of the assessee that different entries exist in Appendix-I for different categories of motor vehicles for providing depreciation at a specified rate depending upon the period of acquisition and the purpose for which they are deployed. Therefore, no....