TaxTMI 
TaxTMI 
2020 (12) TMI 977
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....r is reproduced as under: "The grounds are directed against the decision of the AO to restrict depreciation on plant and machinery @ 15% as against the claim @ 30% by assessee. 5.1. According to the AO, assessee was claiming depreciation @ 30% on plant and machinery. However, in the audit report, the nature of business was stated to be "contractors". The AO asked assessee why depreciation should be allowed @ 30% since assessee was stated to be a contractor, meaning thereby that the said plant & machineries were used for assessee's own business for which allowable depreciation ought to be @ 15%. According to the AO, assessee failed to produce books of accounts, but in course of assessment proceedings, ledger copies of bills were stated ....
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....herein it was stated that hiring charge to the tune of Rs. 85,94,865/- was paid to assessee were filed. Other than the said confirmations for Rs. 85,94,865/-, no evidence in support of claim was furnished. Assessee also had not furnished its books of accounts to me. Even the P & L A/c mentioned that sum of Rs. 1,28,73,808/- comprised of bills received as well as hiring charges. Appellant has not given any proof that Rs. 42,78,943/- (Rs. 1,28,73,808/- - Rs. 85,94,865/-) was out of hiring charge. Therefore, the AO cannot be faulted in taking the view that the sum of Rs. 1,28,73,808/- was not wholly from hiring charge. From available record, AO had rightly inferred that assessee was using the plant and machinery for its own contract business a....
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.... income is from hiring its plant & machinery. It was brought to my notice that the assessee's total receipt is to the tune of Rs. 1,28,73,808/- and the assessee has received hiring income / receipt to the tune of Rs. 85,94,865/- which is 66.76% of the total receipt i.e. to say 2/3rd of the assessee's income. Therefore, according to Ld. A.R, since the assessee's substantial income being 2/3rd of its total receipt was from hiring, the assessee was qualified for higher depreciation @ 30% instead of 15%. For that proposition he relied on the decision of Hon'ble Rajasthan High Court in the case of CIT vs. Bansiwala Iron & Steels Ltd. dated 05.09.2003 reported in 134 Taxmann 124 (Raj). It was pointed out by the Ld. A.R that in that case decided b....