TaxTMI 
TaxTMI 
2017 (12) TMI 644
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....e that the assessee is engaged in the business of providing vehicles like crawler cranes, dozers etc. on hire. During the course of scrutiny assessment the AO disallowed the depreciation to the extent of Rs. 9,18,44,052/- holding that crawler cranes and dozers were plant and machinery entitled for depreciation @ 15% and not @ 30% as claimed by the assessee. The assessee has claimed these vehicles to be „motor lorries‟ used in the business of running them on hire and therefore entitled for higher depreciation. The Hon‟ble CIT(A) has confirmed the disallowance. 5. At the outset learned AR placed on record the order of ITAT, Mumbai Bench in assessee‟s own case in ITA No.430/M/2002 dated 20.12.2004 for the A.Y.1998-99 w....
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....s concerned we found that a crawler crane is a crane having a power plant like a motor vehicle which runs mostly on a diesel engine which sufficient power / torgue and other features of a motor vehicle like cooling systems, starter, radiator, throttle with sufficient fuel tank capacity. Normally, the crawler crane has hydraulic system, boom hoisting system, load hoist system, swing system, enclosed or open cab with lower structure operating on a crawler belt. The crawler crane is capable of moving on its own accord on surface areas. A dozer is a continuous tracked tractor type vehicle used to move large quantities of sand, rubble etc. from one place to another. A dozer also has engine with regular power plant to help it move on its own acco....
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.... registered under the Motor Vehicles Act, 1988 for claiming higher depreciation. 10. The Hon‟ble Supreme Court in the case of I.C.D.S. Ltd. Vs. CIT, 350 ITR 0527 (SC) (2013) has held that depreciation u/s.32 could not be denied for the reason that vehicle was not registered in the name of the assessee under the Motor Vehicle Act. Similar view is taken by the jurisdictional High Court in the case of CIT Vs. Dilip Singh Sardarsingh Bagga, 201 ITR 0995 (Bombay High Court)(1994). 11. Accordingly, reliance of the AO/Hon. CIT (A) of crawler cranes / dozers not holding permanent registration under the Motor Vehicles Act, 1988 is misplaced for declining higher claim of depreciation. 12. The crawler cranes / dozers were not permanently regi....
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....rther discussed the type of work carried out by cranes and arrived at the conclusion that cranes unless registered under the Motor Vehicle Act could not be termed as "Motor Lorry" entitled for depreciation @ 30%. In the said regards, we observe that it is not possible to include each and every type of vehicle in the depreciation schedule. Due to rapid industrialization, the various types of machines used in transport business are increasing day after day with each machine carrying out a particular type of activity in a more efficient manner. These machines do not find direct representation in the depreciation schedule. In such situation, the functional similarly with the nature of activity performed by the listed machine has to be done to d....