TaxTMI 
TaxTMI 
2018 (8) TMI 1967
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....owing grounds of appeal:- "1. Learned AO erred in law as well as on facts in denying depreciation @ 30% on Telescopic Crane amounting to Rs. 5,75,663 and instead allowed depreciation @ 15% despite these cranes are used in the business of running them on hire. Learned CIT(A) erred in law as well as on facts in confirming the same. 2. Learned AO erred in law as well as on facts in denying depreciation @ 30% on Rail for Tower Crane amounting to Rs. 1,04,718 and instead allowed depreciation @ 15% despite these cranes are used in the business of running them on hire. Learned CIT(A) erred in law as well as on facts in confirming the same. 3. Learned AO erred in law as well as on facts in denying depreciation @ 30% on To....
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....es by not considering that the Hydra Cranes do not fall in the category of "Heavy Motor Vehicle". 2. On the facts and circumstances of the case, the Ld. Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of the Ld. Commissioner of Income tax (A) may be set-aside and that of the Assessing Officer be restored." 4. The brief fact of the case is that return of income declaring income of Rs. 80,64,260/- was filed on 29th Sep, 2011. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) on 15th Nov, 2013. The assessee is engaged in the business of hiring out construction material and equipment. On scrutiny, the assessi....
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.... 19504909 Therefore, the assessee was show caused why depreciation @ 30% should be allowed on the cranes which are not falling in the category of motor buses, motor lorries and motor taxies used in the business of running them on hire. The assessee has explained that hydra crane which is used on road is registered as motor vehicle and it is four wheeled pick and carry hydra crane cum transport vehicle used for picking material and shifting the same. In its submission, the assessee has mainly referred to the hydra cranes. The assessing officer has not accepted the explanation of the assessee stating that the cranes used by the assesse are not truck cranes and the same are not falling in....
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.... several courts as discussed in above paragraphs. In its paper book the appellant has failed to file copy of the registration as to which category these cranes have been registered before RTO under Motor Vehicle Registration Act. Hence these cranes cannot be termed as motor or lorry or in the definition of mobile cranes as decided by Hon'ble Gujrat High Court in the case of Gujjco Carriers. Therefore, by a detailed discussion it is very clear that the appellant is mostly having those types of cranes which are not eligible of higher depreciation as is evident from the discussion in above paragraphs they can be termed as plant and machinery hence they are eligible for depreciation @15%. The appellant also furnished copies of RC b....
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....e has contended that assessee is eligible for depreciation on higher rate in the case of Telescopic Crane, Rail for Tower Crane, Tower Crane, Mobile Tower Crane, Crawler Cranes and Tower Crane Masts. He has also placed reliance on the judicial pronouncement in the case of Bothra Shipping Services vs. CIT-XII, Kolkatta (2010) 8 taxman.com 62(Kol) dated 16th July, 2010. On the other hand, ld. departmental representative has vehemently supported the order of assessing officer and also contended that ld. CIT(A) is not right in allowing depreciation @ 30% on hydra crane without considering the detailed finding of assessing officer. 7. We have heard the rival contentions and perused the material on record carefully. As per profit and loss acco....
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....2 taxman 2006 (Guj) held that motor vehicle like fire truck, fork lift truck and crane truck which are designed for special services fall within the category of other trucks also called motor lorries. Further in the case of Gujco Carrier the motor crane was registered as a heavy motor vehicle and was an integral part of motor vehicles on which it was mounted and it was registered as heavy motor vehicles and that crane was used for lifting and moving goods. Mobile crane was also registered with RTO as heavy motor vehicle which was mounted on a truck. It was held in the above cited case that lorry or truck would mean not only any motor vehicle designed to carry freight or goods but also to perform said services like fire fighting, therefore, ....