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

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ITA 2782/DEL/2013Status: DisposedITAT Delhi11 June 2018AY 2003-046 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that based on the Delhi High Court's decision in the assessee's own case, tippers and similar earth-moving equipment used for transportation are entitled to depreciation at 40%. Therefore, the CIT(A)'s order was upheld.

What were the facts?

The assessee claimed depreciation at 40% on pay loaders, tippers, and excavators, while the Assessing Officer allowed only 25%. The CIT(A) allowed the assessee's claim, leading to an appeal by the Revenue.

What were the issues?

The primary issue was the correct rate of depreciation applicable to pay loaders, tippers, and excavators used in the assessee's mining and allied services business.

Which sections of the Income-tax Act were involved?

Section 32

AI-generated summary — verify with the full judgment below

O R D E R. PER PRASHANT MAHARISHI, A.M. :

This appeal is filed by the Revenue against the order of the learned Commissioner of Income Tax (Appeals)-X, New Delhi, dated 21.12.2012 wherein depreciation @ 40% on pay loaders, tippers and ITA. 2782 (Del) of 2013. Sainik Mining & Allied Services. 2 excavators have been allowed instead of depreciation allowed by the Assessing Officer @ 25%.

2.

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/-.

3.

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

4.

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.

ITA. 2782 (Del) of 2013. Sainik Mining & Allied Services. 3

5.

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.

6.

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

The order is pronounced in the Open Court on : 11th June, 2018.

Sd/- Sd/- ( AMIT SHUKLA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : the 11.06.2018. *MEHTA*

ITA. 2782 (Del) of 2013. Sainik Mining & Allied Services. 4

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