TaxTMI 
TaxTMI 
2021 (7) TMI 37
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....re in the nature of Plant & Machinery as held by the AO. 2. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) has erred in deleting the addition by not appreciating the fact that the crawler cranes/trailers are in the nature of Plant & Machinery and thus eligible for depreciation @ 15% as applicable in the case of Plant & Machinery and higher rate of depreciation @ 30% is incorrectly claimed by the assessee. 3. The order of the CIT(A) may be vacated and that of the Assessing Officer may be restored. The appellant craves leave to add, mend, alter or delete any ground of appeal." 2. At the time of hearing, it is brought to our notice that assessee is a company in which public are not substantially interested, ....
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....onsidering the rival submissions of both the parties and perusing the material on record, we observe that an identical issue was involved in A.Y. 2011-12 which has been decided in favour of the assessee in ITA No. 1781/MUM/2015 vide order dated 08/12/2007. The operative of the said order is reproduced as under:- 6. We have gone through the orders to the authorities below as well as the order of IT AT and Hon'ble High Court wherein appeal filed by the revenue is dismissed as withdrawn. On merits, as per entry III(3)(ii) of Part A of Appendix I to I.T. Rules 1962, motor buses, motor lorries and motor taxies used in a business of running them on hire are entitled for depreciation @ 30%. (New Appendix it appears at pg. No. 82 to 89 of com....
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....ely on the definition of the said term as contained in Sec. 2(28) of the Motor Vehicles Act 1988. The term "motor vehicle" as per the said act reads as under. Sec. 2(28) "Motor vehicles", or "Vehicle" means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicles of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than 4 wheels fitted with engine capacity of not exceeding twenty five cubic centimeters." 9. The term used in above definition is ....
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....registration under the Motor Vehicles Act, 1988. In the course of asst. proceedings, it was further explained that even though the crawler cranes were not registered with road transport authorities directly, in certain states, it was required to pay vehicle tax by obtaining temporary permit for the period of its operation in the state. The ld. AO unfortunately has assumed such payments to be in the nature of temporary entry tax. The transport vehicles in Gujarat are governed of Bombay Motor Vehicle Tax Act 1958 which extends to the whole state of Gujarat. The fees paid for temporary permits issued by Gujarat Motor Vehicle department permitted operation of the crawler cranes on public roads also for the given period of time. The assumption m....
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....her depreciation of 30%. The Hon. Supreme Court in the case of Chairman Rajasthan State Road Transport Corp and Others vs. Santosh and Others (2013) 7 SCC 94 (SC) have analyzed the definition of the term motor vehicle to hold even a tractor to be motor vehicle as it is capable of being adapted to run on public roads. 15. This issue of cranes being entitled for depreciation as a motor lorry has been examined in several judicial proceedings including in the appellants own case for A.Y. 1998-99. The decisions relied upon are as under. (i) DCIT Vs. Samarath Lifters Pvt. Ltd., ITA No. 430/M/02, Hon. Members "G" Bench ITAT, Mumbai dated 20.12.2004 for A.Y. 1998-99. (ii) CIT Vs. Samarth Lifters Pvt. Ltd., ITA No. 127 of 2006 (Bombay High Court) ....