PREMIER POULTRY PRODUCTS PRIVATE LIMITED,HYDERABAD vs. DCIT., CIRCLE-5(1), HYDERABAD

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ITA 985/HYD/2024Status: DisposedITAT Hyderabad18 July 2025AY 2015-1614 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the assessee's appeal, affirming that the assessee's financial statements clearly indicated its main business was poultry trading, and income from hiring out lorries was an independent stream, not integral to its core operations. Relying on the Supreme Court judgment in CIT Vs. Gupta Global Exim (P.) Ltd., the Tribunal held that higher depreciation is applicable only if the assessee is primarily in the business of running vehicles on hire, which was not established in this case.

What were the facts?

The assessee, primarily engaged in poultry product trading, claimed a higher depreciation rate of 30% on its motor lorries for AY 2015-16, arguing they were also used for transportation on hire. The Assessing Officer, acting on directions from the Pr. CIT under Section 263, restricted the depreciation to 15%, disallowing an excess of Rs. 83,65,917/-, a decision upheld by the CIT(A).

What were the issues?

Whether the assessee, primarily engaged in poultry trading but also generating freight income from hiring out its motor lorries, is entitled to a higher depreciation rate of 30% on these lorries, or if the standard rate of 15% applies because its main business is not transport on hire.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad

Pronounced: 18.07.2025

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : Premier Poultry Products Private Limited, 5-5-597, Abhyudaya Nagar, Chintakunt, L.B. Nagar – 500074, Hyderabad, Telangana. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Circle – 5(1), Hyderabad.

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