TaxTMI 
TaxTMI 
2017 (4) TMI 116
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....2013 by JCIT, Anand Range, Anand. 2. Assessee has raised 12 grounds of appeal, but, in all, only two issues are raised against the order of ld. CIT(A); firstly, confirming ld. Assessing Officer's action of allowing depreciation on motor car @ 15% as against depreciation claimed @ 50% by the assessee and secondly, against the estimated disallowance of travelling expenditure @ 20% at Rs. 74,814/-. 3. Briefly stated facts, as culled out from the record, are that the assessee is a private limited company, engaged in manufacturing of machine parts. E-return of income declaring total income at Rs. 28,95,390/- was filed on 11.10.2010, accompanied with audit report in Form No.3CA & 3CD. Case was picked up for scrutiny assessment and notice un....
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.... before first day of April 2009 for the purposes of business or profession", then the assessee would be eligible to claim deprecation @ 50% of the written down value. Ld. Counsel also referred to the definition of commercial vehicle appearing at page 18 of the paper-book, as per which, commercial vehicle means ""heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium good" and "medium passenger motor vehicle" but does not include "maxi-cab", "tractor" and "roadroller"". Referring the above details as appearing in the Income-tax Rules, ld. Counsel also referred and relied on the decision of the Co-ordinate Bench, Mumbai in the case of M/s. Blue Steel Engineers vs. DCIT in ITA No.6411/Mum/2010, pronounced on 11.0....
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....on will be admissible @ 50%. 9. Further, commercial vehicle has been defined at note No.6 of Part A of the New Appendix I, which defines commercial vehicle as "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". We further find that motor car purchased by the assessee is a light motor vehicle which is well within the definition of commercial vehicle and this is also not disputed that the motor car has been used otherwise than for business purposes, which shows that assessee has rightly claimed depreciation @ 50% as the impugned motor car was purchased on 28.03.2009. Our view furt....
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.... misconceived having regard to the Depreciation Table annexed to the IT Rules, 1962. In this context, it is noted that r. 5(1) of the IT Rules, 1962 (in short 'the Rules') prescribes that the depreciation allowance is to be calculated at the percentages specified in the table in Appendix-I thereof. The contents of the Table so far as they are relevant for our purpose read as under : "III. Machinery and plant 3. (i) to (vi).... (via) New commercial vehicle which is acquired on or after the 1st day of April, 2009 but before the 1st day of April, 2009 and is put to use before the 1st day of April, 2009 for the purposes of business or profession." 10. Further, para 6 of the Notes below reads as under : ....
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....ound of assessee is allowed. 11. Second ground of the assessee is against the disallowance of travelling expenses. During the course of assessment proceedings, details were called for relating to Directors' travelling expenses, but assessee was unable to substantiate the travelling expenses with evidences as well as was unable to prove the business nexus of the expenditure on travelling at Rs. 3,74,069/-. 12. Ld. Assessing Officer grossly estimated 20% disallowance at Rs. 74,814/-. Even in appeal before the ld. CIT(A), assessee could not get any relief as assessee was again unable to provide details of journey undertaken by the Directors, countries visited and the purpose of such travel undertaken etc. 13. Aggrieved, the assessee i....