TaxTMI 
TaxTMI 
2020 (2) TMI 1571
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....the CIT(A) is justified in confirming the Assessing Officer's order in restricting the depreciation claim on vehicles to 15% instead of 30% claimed by the assessee. 3. The brief facts of the case are as follows: The assessee is an individual who is proprietrix of Maruthayath Transports. The proprietor concern is engaged in the contract work of transportation with Indian Oil Corporation Ltd. (IOCL) and Bharat Petroleum Corporation Ltd. (BPCL). For the assessment years 2008-09 to 2010-11, the assessee had claimed depreciation on vehicles at the rate of 30%. During the course of assessment proceedings for the assessment years 2008-09 to 2010-11, the Assessing Officer noted that the assessee was awarded contract for one year and TDS was deduc....
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....t in the case of Indian Oil Corporation Ltd. (410 ITR 106), confirmed the view taken by the Assessing Officer in restricting the claim of depreciation to 15%. 5. Aggrieved by the orders of the CIT(A), the assessee has filed these appeals before the Tribunal. Identical grounds have been raised for all the assessment years. The assessee has filed a brief written submission which reads as follows: "The learned appellate authority has failed to appreciate the exact nature of the business run by the assessee and has not considered the merits of submissions which are further elucidated as follows. The Appellate Authority has based the entirety of its reasoning on the basis of the contracts the assessee has executed with the above mentioned comp....
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....here Helicopters mobilized/delivered by appellant against consideration to their client without transferring right of possession and effective control effectively. Purports the agreement of being for charter hiring. Supply of Tangible Goods for Use Service (SOTG), impugned activity clearly falling under SOTG services. a. A similar hiring of trucks by companies at its disposal to ferry cargo for their operations where the Driver and maintenance of the truck is made available for exclusive use by the assessee and All necessary conditions, permissions from all authorities and compliance of law is undertaken by the assessee, the Liability to pay taxes and insure goods also rests with the assessee and the trucks are-mobilized by the assessee....
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.... (ii) in case Government requisitioned the tanker during charter period, compensation paid would be retained by owner, and even though no hire charges were payable by assessee, such period was counted as part of charter; and (iii) Manager, Master, personnel and other crew are employed by owner - HELD : Transfer of legal right to use of tankers was complete - Requisition by Government was under authority of legislation or other statutory power, and contractual recognition of such overarching authority cannot be considered to be in derogation of transaction, which otherwise amounts to transfer of right to use, in favor of user - Mere fact Manager, Master, personnel and other crew are employed by owner was immaterial as there were several othe....
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....f the buses leased out by the respondent to the Madhya Pradesh Road Transport Corporation should be treated as use of the vehicle on hire entitling the vehicle for higher rate of depreciation at 40%. " 5.1 The Ld. DR apart from strongly supporting the orders of the income tax authorities, relied on the judgment of the Hon'ble High Court of Kerala in the case of State of Kerala vs. M/s. Thampi & Company (S.T.R. No. 134 of 2008) (judgment dated 22/06/2019). 6. I have heard the rival submissions and perused the material on record. The assessee's proprietory concern was engaged in the business of contract work of transportation with IOCL and BPCL. The assessee had not disclosed any income from hiring of vehicles in the profit and loss accoun....