TaxTMI 
TaxTMI 
2019 (2) TMI 805
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....by ACIT-5(1), Indore. 2. Briefly stated facts as culled out from the records are that the assessee is a Private Limited Company. Return of income for Assessment Year 2008-09 filed on 16.4.2015 declaring income of Rs. 1,14,27,130/-. The case was selected for scrutiny and assessment order u/s 143(3) was passed on 4.5.2010 assessing total income at Rs. 1,16,52,130/-. Subsequently case was reopened by issuing notice u/s 148 of the Act. During the course of re-assessment proceedings Ld. A.O called for the details from the assessee for its claim of depreciation of trucks and dumpers. After going through the submission of the assessee, Ld.A.O was of the view that during the year NIL income has been reported by the assessee from hire charges from ....
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....f original assessment proceeding. The assessment so framed thereon in absence of any tangible material in possession of the assessing officer requires to be quashed. WITHOUT PREJUDICE TO THE ABOVE 02]. That on the facts and in the circumstances of the case the Ld. CI'T (A) erred in maintaining addition on account of Depreciation on Trucks and Dumpers of Rs. 287188/- by restricting the claim of depreciation at 15% only in place of 30% as claimed by the appellant without properly appreciating the facts of the case and submissions made before him. 03]. The assessee reserve its right to add, alter, modify or amend the grounds of appeal as taken in the resent appeal as and when required." 5. At the outset Ld. Counsel for the asses....
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....the appeal of the assessee for Assessment Year 2009-10 order dated 10.11.2014, has held in favour of the assessee had observed as follows; "4.2 We are of the view that as per the main provision related to the allowance of depreciation, i.e, Section 32 of IT Act in respect of any machinery if owned, wholly or partially by the assessee and used for the purpose of the business then deduction of depreciation is allowed as prescribed. As per one of the provision of Section 32, it is required that the machinery is to be put to use for the purpose of business. As far as the vehicles in question are concerned, they were already put to use for the purpose of the business; hence deserve for the claim of depreciation. But the question before us is t....
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....erve that the assessee owns the trucks and dumpers as commercial vehicles and is using them for hiring business since last many years. The claim of depreciation @30% has been allowed in the preceding years, there is no dispute about the assets being put to use and ready to use for hiring business. This activity continued in the subsequent years also. These assets namely trucks and dumpers are part of the 30% block of the assets as on 1.4.2007 and WDV is shown at Rs. 19,48,988/- in the audited statement attached with Form 3CA of the Tax Audit Report. 9. Hon'ble jurisdictional High Court in the case of Speed Automobiles Pvt. Ltd (2004) 32 ITC 537 has confirmed the proposition that the "depreciation is eligible on assets which are ready for u....