2013 (2) TMI 855 – ITAT NAGPUR – TMI ITA No.95 & 96/Nag/2012 Dated:- 6-2-2013 – Shri R. K. Gupta, JM And Shri Rajendra, AM For the Revenue : Mr. D.P.Tiwari For the Assessee : Mr. K.P.Dewani ORDER Per Shri R.K.Gupta, JM: These two appeals have been preferred by the department before the ITAT Nagpur Bench, Nagpur, against the order of leaned CIT(A)-II, Nagpur (Maharashtra) relating to the assessment year 2007-08 and 2008-09, respectively, which have been heard through E-Court, Mumbai. 2. The department is objecting in deleting the addition made by the AO on account of depreciation on higher rate at ₹ 9,42,621/- for the assessment year 2007-08 and at ₹ 78,11,531/- for assessment year 2008-09, respectively. 3. Since common issues are involved in both the cases, therefore, for the sake of convenience, both these cases have been heard and disposed of by this consolidated order together. 4. Brief facts of the case are that the assessee company is doing transportation business.
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nd water and is supplied into it to keep it wet. The surface of the pump gets deteriorated fast due to constant rotation of raw material on its surface. The life of the pump is not more than four to five years. The pump itself is of no use. A pump mounted on the truck can be moved from a plant to the place of requirement of RMC material. As the assessee has piled these for hire charges on other contract, depreciation, therefore, is claimed on higher side. However, the contention of the assessee was not accepted by the AO. Reliance was placed on a decision in the case of Popular Borewell Services, reported in 194 ITR 12(Mad), wherein it was held that, borewell rise and compressor is independent machinery installed on truck chassis and it is not used to carry goods . Accordingly, depreciation was allowed at the normal rate on the concrete mixer. 5. Assessee preferred before the learned CIT(A) for both of the years. Submissions made before the AO were reiterated before the learned CIT(A).
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i.e. rotary container is a body installed on chassis and, therefore, eligible for depreciation as provided on motor lorries. The contention of the assessee that in order to carry the goods like RMC specific body is required to be made so as to transport the goods like RMC from one destination to another. Accordingly, it was found that the body id a rotary container placed on chassis has no independent utility as a plant & machinery. The body is similar to freezed container for carrying ice cream or milk or heated container carrying bitumen etc. Accordingly, learned CIT(A) held that crane mounted on a truck is within expression Motor Lorries motor vehicle like fire trucks for lift trucks and crane trucks which are designated special service fall within the category of motor trucks. In support of its contention, reliance placed by the learned AR on the decision of the Shah Construction Co. Ltd. (supra) and Gujco Carriers (supra), was found acceptable. The decision of the Hon ble Mad
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nt year 2007-08, vide order dated 11-7-2012, wherein similar facts were involved. 7. We have heard rival submission and considered them carefully. We have also perused the order of AO and CIT(A). After considering all the material, we found no infirmity in the order of the learned CIT(A), who has decided the issue in favour of the assessee following the decision of the Hon ble Gujarat High Court in the case of Gujco Carriers (supra). Similar issue was involved in the case of M/s Jindal Earthmovers Pvt. Ltd. (supra), wherein the Tribunal has held that on the asset attached with the lorry, higher depreciation is allowable. While holding so, the decision of the Hon Gujarat High Court in the case of Gujco Carriers (supra) and the decision of Ansari Holding & Investment (P) Ltd. Vs. DCIT, 12 SOT 438, whereby it was held that mobile cranes registered as heavy motor vehicle are eligible for depreciation at the rate of 40%, allowed the issue in favour of the assessee. Similar facts are inv
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