CIT vs. SAINIK MINING AND ALLIED SERVICES LTD

ITA - 223 / 2011HC Delhi09 February 20111 pages

For Petitioner: RASHMI CHOPRA

AI SummaryDismissed

What did the High Court hold?

The High Court held that the CIT(A)'s finding that the assessee is in the business of transport and that dumpers and trucks used for transporting coal are entitled to 40% depreciation is a finding of fact. The Court referred to its own judgment in Commissioner of Income-Tax Vs. Bansal Credits Ltd., 259 ITR 69, which would be squarely applicable, warranting depreciation at 40%. Regarding the second proposed question of law concerning other heavy vehicles, the Court found it to be entirely based on facts, and no question of law arose from that aspect. Consequently, the appeal was dismissed as no question of law arose.

What were the facts?

The assessee claimed depreciation at 40% on dumpers and trucks. The Assessing Officer (AO) allowed depreciation at 25%, considering these as plant and machinery. The Commissioner of Income Tax (Appeals) [CIT(A)] reversed the AO's order, allowing 40% depreciation on dumpers and trucks used for coal transportation, noting the assessee is in the transport business. Depreciation on other heavy vehicles like trippers, pay loaders, hydraulic excavators, motor graders, and bulldozers was allowed at 25% and not disputed. The Revenue appealed the CIT(A)'s order to the High Court.

What were the issues?

1. Whether the assessee is entitled to depreciation at 40% on dumpers and trucks used for transporting coal, or if it should be restricted to 25% as plant and machinery. Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The AO was of the opinion that dumpers and trucks fall under the category of plant and machinery, hence depreciation should be at 25%. 2. Whether a question of law arises from the facts concerning other heavy vehicles. Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue proposed a second question of law, which the High Court considered to be entirely based on facts.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 09.02.2011 . . Present: Ms. Rashmi Chopra, Advocate for the Revenue. Mr. Sanat Kapoor, Advocate with Mr. Saurav Kumar for the respondent/assessee. . . + ITA 223/2011 . . The assessee had claimed depreciation @ 40% on dumper, trucks etc. The Assessing Officer however was of the opinion that the depreciation shall be allowable @ 25% as the dumper, trucks etc. were falling under the category of plant and machinery. The CIT (Appeal) reversed this order of the Assessing officer holding that the assessee would be entitled to 40% depreciation as they were used for transporting coal from one place to another place. In so far as other heavy vehicles namely, trippers/pay loaders/hydraulic excavators/ motor grader/ bulldozer are concerned, the depreciation was allowed @ 25% which is sustained and there is no dispute about the same. A finding of fact is also recorded to the effect that the assessee is in the business of transport. On the basis of aforesaid findings, judgment of this Court in the case of Commissioner of Income-Tax Vs. Bansal Credits Ltd., 259 ITR 69 shall be squarely applicable warranting depreciation @ 40%. In so far as second question of law proposed in this appeal is concerned, that is entirely based on facts and no question of law arises on that aspect as well. No question of law arises. This appeal is accordingly dismissed. . . . . A.K. SIKRI, J. . INDERMEET KAUR, J. FEBRUARY 9, 2011 skb . 30#

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