DCIT, NEW DELHI vs. M/S SAINIK MINING & ALLIED SERVICES LTD.,, NEW DELHI

The brief facts of the case is that assessee is a company, who filed the return on 28.11.2003 at Rs.1.99 crores. The assessee has claimed the depreciation on pay loaders, tippers and trucks @ 40%. However, the learned Assessing Officer was of the view that they are entitled to depreciation @ 25% only. According to the learned Assessing Officer such rates are available only if they are used in the business of running them on hire. The learned Assessing Officer held that all these equipments are only earth moving machines and are entitled to the depreciation @ 25%. Consequently, the depreciation on the machinery was allowed of Rs.94,38,265/- against claim of the assessee at Rs.1,51,01,224/-.

The assessee preferred appeal before the learned CIT (Appeals), who allowed the claim of the assessee. Therefore, Revenue is in appeal before us.

The learned Departmental Representative relied upon the order of the learned Assessing Officer. The learned AR submitted a paper book in the form of case laws compilation. He relied on them.

We have carefully considered the rival contentions. The Hon’ble Delhi High Court in assessee’s own case has decided an identical issue and held that tippers are entitled for depreciation @ 40%. In that decision the issue was that these vehicles were used for transporting the coal from one place to another. Before the Hon’ble High Court along with tippers, pay loaders, hydraulic excavators and motor graders were also considered. In view of the decision of the Hon’ble High Court in assessee’s own case, we do not find any infirmity in the order of the learned CIT (Appeals) in allowing depreciation @ 40% on pay loaders, tippers and excavators. Accordingly, ground No. 1 of the appeal of the Revenue is dismissed.

In the result, the appeal of the Revenue is dismissed.