AI Drafter 
TaxTMI 
TaxTMI 
2021 (4) TMI 952
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....er referred as to 'the Act') for Assessment Year 2010-11. 2. The issue relates to depreciation on claim of Rs. 24,80,124/- @50% wherein 15% has been allowed by the Revenue. 3. At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee submitted before us that the assessee purchased a motor car amounting to Rs. 49,60,247/- in the year under consideration and has put to use before October 2009. The claim made on account of special insertion of rate in respect of "Commercial Vehicle" has been denied by the Revenue. It was further submitted that the issue is squarely covered by number of judgments passed by the Coordinate Bench. The copies of the judgment whereby and whereunder the identical issue has been dec....
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.... Tax Rules (3rd Edition) of Taxman i.e. 2016 edition. Paragraph-6 contemplates definition of "commercial vehicle". This paragraph is available at page no.1.433 of the Taxmann's Income Tax Rules. I find it is verbatim same as considered by the ITAT, Mumbai. There is no such condition that vehicle would qualify as "commercial vehicles" when licensed to be used as public transport. For facility of reference, I take note of this as under: 6. "Commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" but does not include "maxi-cab", "motor-cab", "tractor" and "road-roller". The expressions "heavy goods vehicle", "heavy passenger mo....
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....the first day of April 2009, and is put to use before first day of April 2009 for the purposes of business or profession", then the assessee would be eligible to claim deprecation @ 50% of the written down value. Ld. Counsel also referred to the definition of commercial vehicle appearing at page 18 of the paper-book, as per which, commercial vehicle means ""heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium good" and "medium passenger motor vehicle" but does not include "maxi-cab", "tractor" and "road-roller". Referring the above details as appearing in the Income-tax Rules, ld. Counsel also referred and relied on the decision of the Co-ordinate Bench, Mumbai in the case of M/s. Blue Steel Engineers vs. DC....
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....09 for the purposes of business or profession", depreciation will be admissible @ 50%. 9. Further, commercial vehicle has been defined at note No.6 of Part A of the New Appendix I, which defines commercial vehicle as "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" but does not include "maxi-cab", "motor-cab", "tractor" and "road-roller". We further find that motor car purchased by the assessee is a light motor vehicle which is well within the definition of commercial vehicle and this is also not disputed that the motor car has been used otherwise than for business purposes, which shows that assessee has rightly claimed depreciation @ 50% as t....
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....e IT authorities that a motor car does not amount to a commercial vehicle is misconceived having regard to the Depreciation Table annexed to the IT Rules, 1962. In this context, it is noted that r. 5(1) of the IT Rules, 1962 (in short 'the Rules') prescribes that the depreciation allowance is to be calculated at the percentages specified in the table in Appendix-I thereof. The contents of the Table so far as they are relevant for our purpose read as under : "III. Machinery and plant 3. (i) to (vi).... (via) New commercial vehicle which is acquired on or after the 1st day of April, 2009 but before the 1st day of April, 2009 and is put to use before the 1st day of April, 2009 for the purposes of business or profession." 10. F....