TaxTMI 
TaxTMI 
2014 (7) TMI 840
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....er dated 30.11.2006. 2. The only issue arising in the instant appeal is the validity in law of the consideration of Rs. 1,33,054/-, being the one time vehicle tax paid by the assessee on the two vehicles purchased by it during the relevant year, as capital expenditure, exigible to depreciation, as against being revenue expenditure, deductible u/s.37(1). 3. The assessee's case is that the said tax, paid under Bombay Motor Vehicles Tax Act, 1958 ('the said Act' hereinafter) was an annual levy since its inception. Vide an amendment to the said Act, effective 1995, the annual tax was converted into a one time tax, so that it was required to be paid once during the life time of a vehicle, at the time of its purchase. The same would, howeve....
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....he State Government, by notification in the Official Gazette, but not exceeding the maximum rates specified in the first Schedule: (1D) (a) Subject to the provisions of this Act, there shall be levied and collected on all motor cars and omnibuses used or kept for use in the State, a one time tax for the life time of such vehicle.' (emphasis, ours) It is accordingly amply clear that the tax is under law payable on motor cars or omnibuses registered in the State of Maharashtra, as a one-time tax for the life time of said vehicles. Further, the tax is for user, active or passive, of the motor vehicle in the territory to which the jurisdiction of the said Act extends, i.e., the State of Maharashtra. The question is of the nature ....
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....r fixed assets, i.e., AS-10, issued by the Institute of Chartered Accountants of India, defines 'fixed asset', also laying down the principles for its valuation (cost) or determining its cost. The relevant parts thereof are reproduced as under:- 'Definitions 6. The following terms are used in this Standard with the meanings specified: 6.l Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business.' 'Main Principles 20. The cost of a fixed asset should comprise its purchase price and any attributable cost of bringing the asset to its working condition for its intended use.' (emphasis, ours) Without dou....
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....ries of annual payments. In fact, we have held that the amendment/s has the effect of altering the nature of the levy in-as-much as the pre-amended tax could be regarded as an annual charge for the user of the vehicle for one year at a time. 4.4 Finally, we may also address the argument that the said Act permits the user of the vehicle without payment of tax, so that it cannot be regarded as a tax for its user, advanced before us by the ld. counsel with reference to section 12A, which reads as under: '12A No motor vehicle used or kept for use in the State shall be used on any road in the State in case any tax payable in respect thereof remains unpaid for more than thirty days after it has become due under the provisions of this Act un....