Depreciation @ 40% on vehicles used for running on hire to various parties without agreement allowable

The case of the assessee is that it was giving its trucks and JCBs on hire to various parties and complete details thereof along with names and addresses of the parties from whom the carting income was earned, and details of the trips made by the vehicles, rate at which the income was earned by the assessee, has been recorded in the account book of the assessee, a copy of which has been filed in the compilation before the Tribunal. We find that the Revenue could not controvert the submission of the assessee that it has, in fact, given its vehicles to various parties during the relevant accounting period on hire, and has declared income thereof. Merely because, there was no separate lease agreement with various parties, is not decisive of the issue. The vehicles were given to various parties on per trip basis, and therefore, separate agreement for carting income for each trip with various parties is not practicable to be executed and produced before the Revenue authorities. In these facts of the case, we are of the view that the assessee was entitled to higher depreciation at the rate of 40%, and accordingly, the grounds of the appeal no.3.1 and 3.2 of the assessee are allowed.

ITAT AHMEDABAD, “B” BENCH

BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND
ANIL CHATURVEDI, ACCOUNTANT MEMBER)

IT(SS)A No.178 to 182/Ahd/2009

[Asst. Year : 2003-2004, 2004-2005, 2005-2006, 2006-2007 and 2007-2008]

M/s. Tirupati Construction Company vs. ACIT

IT(SS)A No.73 to 75/Ahd/2010

[Asstt.Year : 2004-2005, 2005-2006 and 2006-2007]

ACIT Vs.M/s. Tirupati Construction Company

Date of Pronouncement: 13/11/2013

O R D E R

PER BENCH: This group of appeals, five by the assessee and three by the Revenue for the different assessment years, are directed against the orders of the CIT(A). These are being disposed of with this consolidated order.