The DCIT, Central circle-2, Visakhapatnam V. M/s Maruthi Transports, Vijayawada

ITA 485/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2709 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 13-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Keywords: Depreciation; Set aside
• Section: 32

Judgement Text

ITA 485/VIZ/2010 MARUTHI TRANSPORTS, VJA IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 485 /VIZAG/ 20 10 ASSESSMENT YEAR : 2004 - 05 DCIT CENTRAL CIRCL E - 2 VISAKHAPATNAM M/S. MARUTHI TRANSPORTS VIJAYAWADA (APPELLANT) VS. (RESPONDENT) PAN NO.AAFFM 6825Q APPELLANT BY: SHRI D.S. SUNDER SINGH, DR RESPONDENT BY: SHRI C. SUBRAHMANYAM, CA ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER : - THIS APPEAL IS P REFERRED BY THE REVENUE AGAINST THE ORDER OF CIT(A) ON VARIOUS GROUNDS WHICH ARE AS UNDER: 1. THE ORDERS OF THE LEARNED CIT(A), VIJAYAWADA IS ERRONEOUS AND OPPOSED TO LAW AND FACTS OF THE CASE. 2. THE LEARNED CIT(A) - 1, VIJAYAWADA HAS ERRED THAT THE ASSESSEE IS ENTITLED TO HIGHER RATE OF DEPRECIATION AT 40% APPLICABLE FOR MOTOR LORRIES USED IN THE BUSINESS OF HIRE IN RESPECT OF THE REACH STACKERS AND MOBILE CRANES THROUGH THESE MOTOR VEHICLES WERE NOT REGISTERED AS HEAVY GOODS VEHICLES UNDER THE MOTOR VEHICLES AC T. 3. THE LEARNED CIT(A), VIJAYAWADA ERRED IN STATING THAT THE PROVISIONS OF SECTION 32 OF THE INCOME TAX ACT 1961 DO NOT CONTAIN A REQUIREMENT FOR REGISTRATION UNDER THE MOTOR VEHICLES ACT FOR CLAIMING DEPRECIATION. THE LEARNED CIT(A) OUGHT TO HAVE APPRECI ATED THAT THE ISSUE UNDER CONSIDERATION WAS NOT REGARDING THE ELIGIBILITY OF REACH STACKERS AND MOBILE CRANES FOR DEPRECIATION BUT WAS REGARDING THE ELIGIBILITY FOR HIGHER RATE OF DEPRECIATION AS AGAINST THE NORMAL RATE APPLICABLE TO GENERAL PLANT AND MACH INERY. 4. THE LEARNED CIT(A) ERRED IN STATING THAT THE HONBLE GUJARAT HIGH COURT DID NOT HOLD THAT REGISTRATION OF MOBILE CRANES UNDER THE MOTOR VEHICLES ACT IS ESSENTIAL FOR CLAIMING HIGHER RATE OF DEPRECIATION IN THE CASE OF GUJCO CARRIERS VS. CIT (256 IT R 50). THE LEARNED CIT(A) OUGHT TO HAVE SEEN THAT WHILE CONCLUDING THE ISSUE, THE HONBLE COURT SPECIFICALLY REFERRED TO THE MOBILE CRANE OF THE ASSESSEE WHICH WAS REGISTERED AS A HEAVY MOTOR VEHICLE AND HELD THAT SUCH A MOBILE CRANE WOULD FALL WITHIN THE COPE OF THE ITA 485/VIZ/2010 MARUTHI TRANSPORTS, VJA 2 EXPRESSION `MOTOR LORRIES IN THE RELEVANT ENTRY IN THE TABLE IN APPENDIX - 1 OF THE I.T. RULES DEALING WITH THE RATES OF DEPRECIATION. 5. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. DURING THE COURSE OF HEARING, OUR ATTENTION W AS INVITED TO THE FACT THAT A SOLITARY ISSUE INVOLVED IN THIS APPEAL IS WITH REGARD TO THE PERCENTAGE OF DEPRECIATION ON MOTOR LORRIES AND THE IMPUGNED ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004 - 05 TO 2006 - 07. A COPY OF THE ORDER OF THE TRIBUNAL IS PLACED ON RECORD WITH THE SUBMISSION THAT IN THOSE CASES, THE TRIBUNAL HAS RESTORED THE MATTER TO THE FILE OF THE A.O. WITH THE DIRECTION TO ADJUDICATE THE ISSUE AFRESH IN THE LIGHT OF MATERIAL PLACED BE FORE THE TRIBUNAL. SINCE THE MATTER IS SUBJUDICE BEFORE THE ASSESSING OFFICER THE IMPUGNED ISSUE ALSO BE RESTORED TO THE FILE OF THE A.O. FOR ADJUDICATION. THESE FACTUAL ASPECTS WERE NOT DISPUTED BY THE PARTIES. 3. HAVING CAREFULLY EXAMINED THE ORDER OF THE TRIBUNAL AND THE ORDER OF THE AUTHORITIES BELOW, WE ARE OF THE VIEW THAT SINCE IN EARLIER YEARS, THE IDENTICAL ISSUE HAD BEEN RESTORED BACK TO THE FILE OF THE A.O. FOR ITS RE - ADJUDICATION, THERE WOULD BE NO JUSTIFICATION TO GIVE ANY FINDING ON THE IMP UGNED ISSUE. THE BEST COURSE IS THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE A.O. FOR ITS READJUDICATION IN THE LIGHT OF HIS DECISION IN EARLIER YEARS. WE ACCORDINGLY SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE A.O. WITH A DIRECTION TO READJUDICATE THE ISSUE AFRESH IN THE LIGHT OF HIS FINDINGS FOR EARLIER YEARS I.E. 2004 - 05 TO 2006 - 07. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 24.11.2010 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 24 TH NOVEMBER , 20 10 ITA 485/VIZ/2010 MARUTHI TRANSPORTS, VJA 3 COPY TO 1 THE DCIT, CENTRAL CIRCLE - 2, VISAKHAPATNAM 2 M/S. MARUTHI TRANSPORT, D.NO.26 - 13 - 37, SANYASIRAJU ROAD , GANDHINAGAR, VIJAYAWADA 3 THE CI T, VIJAYAWADA 4 THE CIT (A) , VIJAYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM