TaxTMI 
TaxTMI 
2024 (5) TMI 591
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.... accordingly proceeded ex-parte. 2. The Revenue pleads the following substantive grounds in the instant appeal : 1. "Whether on the facts and in the circumstances of the case, and in law the learned CIT(A) is justified in deleting the disallowance on new Honda City car of Rs. 3,62,525/-. 2. Whether on the facts and in the circumstances of the case and in law the learned CIT(A) is justified in deleting the disallowance ignoring that as per Rule 5 if Income tax Rules, 1962, the claim of depreciation of the assessee @ 50% on new Honda City car as per New Appendix-I, III, 3 (via) of Plant & Machinery are not fulfilled. 3. Whether on the facts and in the circumstances of the case and in law the learned CIT(A) is jus....
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....2) They shall come into force on the 1st day of April, 2009. In the Income-tax Rules, 1962, in the Table to New Appendix 1, in Part-A relating to TANGIBLE ASSETS, under the heading III. MACHINERY AND PLANT, in item (3), after sub- item (vi) and entries relating thereto, the following shall be inserted, namely:- "(via) New commercial vehicle which is acquired on or after the 1st day of January, 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 [See paragraph 6 of the Notes below this Table] 50". [F. No. 142/01/09-TPL] INCOME-TAX (ELEVENTH AMENDMENT) RULES, 2009 - AMENDMENT IN NEW APPENDIX 1 NOTIFICATION NO. 37/2009 [F.No.142J....
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....te to 7.5% i.e., 50 percent of the depreciation allowable for Plant & Machinery i.e., 15%. During the course of assessment proceedings, the appellant also submitted before AO that the motor was put to use immediately on its purchase and there was no reason for the company to halt to put the care to use till the registration of Car with RTO Authority. 7.10. Therefore, the only dispute remaining in the instant appeal is whether the appellant should be treated to have 'used' and 'put in use' the Vehicle immediately from the date of purchase notwithstanding the AO's contention that the Vehicle could not be operated till the time of registration of Vehicle with RTO Authority. In the light of CBDT Notifications as specified in the previo....
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.... get relief of deprecation rate. Accordingly, I hereby direct the AO to delete the addition made to the tune of Rs. 3,62,525/-. The grounds of appeal on this issue are accordingly allowed." 4. I have given my thoughtful consideration to the Revenue's pleadings and assessee's stand adopted throughout regarding the instant sole issue of disallowance of depreciation. The Revenue's case in light of the assessment findings is that once the assessee's corresponding vehement had been registered after 01.10.2009, the impugned depreciation had been rightly restricted to 50% as per Rule 5 of Income Tax Rules, 1962; New Appendix-1; III Plant & Machinery (3)(via) in very terms. I find no merit in Revenue's arguments since it clearly appears to be an....