2018 (12) TMI 979

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....iled application for condonation of delay. Having heard the Ld.counsel for the assessee and the Ld. D.R., this Tribunal finds that there was a sufficient cause on the part of the assessee in not filing the appeal within the specified time. Therefore, the delay of 451 days in filing the appeal is hereby condoned and the appeal is admitted. 3. Now coming to the merit of the appeal, Sh. N. Devanathan, the Ld.counsel for the assessee submitted that there are two grounds involved in this appeal. The first issue is with regard to disallowance of depreciation of Rs. 3,18,550/- on the lorry and the next issue is with regard to disallowance of commission expenses of Rs. 12,48,980/-. According to the Ld. counsel, it is not a commission. It is h....

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....rd Shri B. Sagadevan, the Ld. Departmental Representative also. With regard to claim of depreciation, the assessee has produced a copy of sale receipt said to be issued by the lorry owners, copy of which is available at page 12 of the paper-book. It is not known whether the copy of sale receipt was available before the Assessing Officer and the CIT(Appeals). As rightly submitted by the Ld.counsel for the assessee, transfer of registration in the name of the assessee may not be required for the purpose of claim of depreciation. What is required is delivery of motor vehicle to the assessee. In fact, the Kerala High Court in its judgment in the case of Nidish Transport Corporation (supra) observed as follows at paragraph 3:- ".........

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....s years are entitled to the depreciation allowance. The assessees were, no doubt, the owners of the vehicles. They used the vehicles for their business and they are entitled to depreciation on the buses. We, therefore, answer both the questions referred to us in both the cases in the affirmative, against the Revenue and in favour of the assessees." 6. In view of the above, this Tribunal is of the considered opinion that the Assessing Officer has to verify the sale receipt, copy of which is available at page 12 of the paper-book and thereafter decide the issue afresh in the light of the judgment of Kerala High Court in Nidish Transport Corporation (supra), in accordance with law, after giving a reasonable opportunity to ....