TaxTMI 
TaxTMI 
2015 (10) TMI 2740
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....to assessment year 2008-2009, under sub-item 3(ii) of Item III of Appendix I of the Income Tax Rules, 1962, as the special rate of 30% depreciation is allowable in the case of motor vehicles used in the business of running them on hire or where such motor vehicles are used in the assessee's business of transportation of goods on hire ?" 2. With the consent of the parties, heard finally. 3. The assessee is engaged in civil construction business. In the Return of income filed for the assessment year 2008-2009, assessee claimed depreciation of Rs. 18,78,623/- at the rate of 30% on the Trucks purchased during the previous year relevant to the assessment year 2008-2009. The Assessing Officer while framing regular assessment under Section 1....
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.... and restored the order of Assessing Officer, following the judgment of jurisdictional High Court in the case of CIT Vs. Anupchand & Co. 239 ITR 466 (M.P.) and relying upon the order of ITAT in ITA Nos.42 & 58/ Agr/2012. The relevant extract of the order of M.P. High Court in Anupchand's case (Supra) is reproduced as under:- "The assessee was a registered firm deriving income from contract work. The assessee claimed depreciation allowance at the rate of 40 per cent on trucks used for its business purpose. The Income Tax Officer allowed only 30 per cent allowance on the ground that the vehicles were used for the assessee's own business of transporting goods. On a reference : Held, that the benefit of 40 per cent depreciation allo....
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....Global Exim (P) Ltd. (Civil Appeal No.3342 of 2008) has well discussed the identical issue and laid down the test for applicability of higher rate of depreciation in the context of sub-item 3(ii) of item III of Apendix I appended to the Rules. It is held that as higher rate of depreciation is admissible on motor trucks used in a business of running them on hire, therefore, the use of the same in the business of the assessee of transportation is the test. 8. In the present case, admittedly, the assessee is in the business of civil construction. The assessee had engaged his own Trucks for transporting earth to facilitate laying of roads. Under such circumstances, the assessee cannot be said to be in the business of hiring out his Trucks for ....