Case Law Details
Tippers, vibrator & vibrator soil compactor are ‘commercial vehicle’ eligible for 40% depreciation
Perusal of Section 32 of the Act would show that it deals with the depreciation of building, machinery, plant or furniture being tangible assets. It also deals with the expression ‘commercial vehicle’ in unnumbered proviso 3, which is acquired by the assessee on or after the 1st day of October, 1998 but before the 1st day of April 1999. According to explanation, the commercial vehicle is to include heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle but is not to include maxi-cab, motor-cab, tractor and road-roller.
Therefore, the question which falls for consideration is whether Tippers, Vibrator and Vibrator Soil Compactor would be covered by the expression ‘commercial vehicle’ or such vehicles have to be regarded as plant and machinery to attract less percentage of depreciation. The reasoning adopted by the Tribunal would not suffer from any legal infirmity because the Tippers are registered under the Motor Vehicles Act, 1988 (for brevity ‘the 1988 Act’) as road transport vehicle as would be vibrator and vibrator soil compactor. Insofar as Tippers are concerned, a Division Bench of the Karntaka High Court in the case of Commissioner of Income Tax v. Mahalinga Setty & Co. (1992) 195 ITR 526 (KAR) has opined against the revenue by giving the benefit of investment allowance to the assessee . If that be so then Vibrator and the Vibrator Soil Compactor would follow the suit because the reasoning adopted is that the vehicles are registered under the 1998 Act and it is essential machinery to carry on the construction work.
PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
1. ITA No. 380 of 2011 Date of Decision: February 21, 2012
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Sir , I need a evidence related that driving licence is not required for road roller