Capital Bus Service Pvt. Ltd. v. CIT

123 ITR 404High Court1980#1242 most cited

What is Capital Bus Service Pvt. Ltd. v. CIT authority for?

Depreciation under section 32 is allowable even if an asset is not actively used, provided it is kept in a condition of readiness or is put ready for use, as this amounts to passive user.

91

judgments rely on this decision, according to BharatTax’s citation analysis of 366,421 Indian tax judgments — from 2008 to 2026.

Also referred to as

Capital Bus Service Pvt. Ltd. v. CIT · 123 ITR 404 · section 32 · depreciation · asset ready for use · put to use · passive user · condition of readiness · allowable depreciation · written down value

Sections most often in play

Section 143(3)Section 32Section 80IASection 115JBSection 133(6)Section 144C(13)Section 154Section 40A(2)

Issues it is cited on

ready for usesection 41(2)construction pesection 2(11)section 43(6)put to usecommercial rightswritten down valuesection 32(1)employees contribution to pfenduring benefitsection 32

Judgments citing Capital Bus Service Pvt. Ltd. v. CIT

The DCIT(OSD)Range-1, Ahmedabad vs. Corrtech International Pvt.Ltd., Ahmedabad

ITA 1871/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad19 Oct 2022AY 2009-10

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

Section 14ASection 26(1)(iii)

…use. It is a settled law that one an asset is ready to use then irrespective of the fact as to whether such asset has been put to use or not depreciation is allowable on the same. The Ld. A.R. relied upon the decision of Capital Bus Service Pvt. Ltd. vs. CIT, 123 ITR 404 (Del.), ACIT vs. Ashima Syntex Ltd., 251 ITR 133 (Guj.). 28. We have heard both the parties and perused all the relevant material available on record. It is not a disputed fact that the ownership of the said movable assets such as moving and ready to use machines are owned by the assessee. The assessee has made use of these assets related to con…

Corrtech International Pvt.Ltd., Ahmedabad vs. The ACIT., (OSD)Range-1, Ahmedabad

ITA 1785/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad19 Oct 2022AY 2009-10

Bench: Ms. Suchitra Kamble& Shri Waseem Ahmed

Section 14ASection 26(1)(iii)

…use. It is a settled law that one an asset is ready to use then irrespective of the fact as to whether such asset has been put to use or not depreciation is allowable on the same. The Ld. A.R. relied upon the decision of Capital Bus Service Pvt. Ltd. vs. CIT, 123 ITR 404 (Del.), ACIT vs. Ashima Syntex Ltd., 251 ITR 133 (Guj.). 28. We have heard both the parties and perused all the relevant material available on record. It is not a disputed fact that the ownership of the said movable assets such as moving and ready to use machines are owned by the assessee. The assessee has made use of these assets related to con…

Shri Ghanshyambhai Thakkar, Anand vs. The ITO, Ward-1(3), Vadodara

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 540/AHD/2020[2014-15]Status: DisposedITAT Ahmedabad12 Oct 2022AY 2014-15

Bench: Shri P.M. Jagtap, Vice-Assessment Year : 2014-15 Shri Ghanshyambhai Thakkar, The Income-Tax Officer, B-16, Vijay Society, Kansari, Vs Circle 1(3), Khambhatt, Anand, Gujarat Vadodara Pan : Aaypt 7152 N अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri V.V. Govani, Ar Revenue By : Ms. M.M. Garg, Sr. Dr सुनवाई क" तार"ख/Date Of Hearing : 04/10/2022 घोषणा क" तार"ख /Date Of Pronouncement: 12/10/2022

For Appellant: Shri V.V. Govani, ARFor Respondent: Ms. M.M. Garg, Sr. DR
Section 143(2)Section 143(3)

…d of the FY 2013-14. Further to this, I recently came to know that the Trial run of machinery is also considered as put to use for the claim of depreciation as per the following case laws. - Gujarat High Court in the case of ACIT Vs. Ashima Syntex Ltd. (2001 251 ITR 133 GUJ) - CIT vs. Mentha & Allied Products (326 ITR 297 (Allahabad HC)) Where as in my case there is an actual utilisation of the assets itself before the end of the FY 2013-14 and hence I request your honour to kindly consider the assets as utilised and allow the claim of depreciation on these assets & oblige. I also request you sir to kindly con…

ACIT Cir 2(2)(1), Mumbai vs. L & T Ltd ( Datar Switch Gear Ltd Merged ), Mumbai

In the result, the appeal filed by the revenue is allowed and the cross objection filed by the assessee is treated as allowed for statistical purposes

ITA 3806/MUM/2016[2004-05]Status: DisposedITAT Mumbai03 Aug 2022AY 2004-05
Section 143(3)

…n. In support of these contentions, the ld A.R placed his reliance on the following case laws:- (a) CIT vs. Kotak Mahindra Finance Ltd (2009)(317 ITR 236)(Bom) (b) Multican Builders Ltd vs. CIT (2005)(278 ITR 142)(Cal) (c) Capital Bus Service (P) Ltd vs. CIT (123 ITR 404)(Delhi) (d) PCIT vs. Larsen and Toubro Ltd (2018)(403 ITR 248)(Bom) Referring to the Cross objection, the Ld A.R submitted that the above said amount of Rs.43.42 crores should be allowed as “business loss”. 9 M/s. L&T Ltd. (Datar Switch Gear Ltd. merged) 18. We have heard rival contentions and perused the record. As per the agreement entered w…

Mr. Syed Mustafa Kamal Pasha, Bangalore vs. Deputy Commissioner of Income Tax, Circle-6(2)(1), Bangalore

In the result, the appeal of assessee is treated as partly allowed for statistical purposes

ITA 705/BANG/2020[2012-13]Status: DisposedITAT Bangalore11 Apr 2022AY 2012-13

Bench: Shri Chandra Poojari, Am & Smt. Beena Pillai, Jm Mr.Syed Mustafa Kamal Pasha, Deputy Commissioner No.3, 4Th Main Road, Of Income Tax, Vs. Jayamahal Extension, Circle - 6(2)(1) Bangalore Bangalore Pan – Adcpk8497N Appellant Respondent

For Respondent: Assessee by Sri Sanketh Nayak, CA
Section 133(6)

…ommissioned or no unit of electricity was generated on 31-03-2015. We set aside the order of the CIT(A) and allow the appeal of the assessee. 4 iii. The Hon'ble High Court of Gujarat in the case of Ashima Syntex Ltd. Vs. Assistant Commissioner of Income Tax [251 ITR 133] is on the view that Even trial production of a machinery would fall within the ambit of ‘used for the purpose of business’. Further, as the statue does not prescribe a minimum time-limit for ‘use’ of the machinery, the assessee cannot be denied the benefit of depreciation on the ground that the machinery was used for a very short duration for tr…

Sabarmati Gas Limited, Ahmedabad vs. The Asstt. Commissioner of Income Tax, Gandhinagar Circle, Gandhinagar

Appeal of the Revenue is partly allowed for statistical purposes

ITA 1607/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Feb 2022AY 2010-11
For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Shri Mohd Usman, CIT DR &
Section 250(6)

…or crop of potatoes— However, the plant was kept in operational condition— Expenses relating to cold storage plant allowed by AO—Depreciation could not be disallowed" c. Capital Bus Service (p) Ltd vs. CIT, High Court of Delhi (1980) 17 CTR (DEL) 155 : (1980) 123 ITR 404 (DEL) : (1980) 4 TAXMAN 309 Depreciation—Allowability—Buses used for not more than 30 days—Buses kept ready by the owner for use in the business though the same could not be put to use for more than 30 days due to reason beyond assessee's control—Buses can be said to have been used throughout the year for the purposes of allowing depreciation I d…

The Joint Commissioner of Income Tax(OSD), Gandhinagar vs. Sabarmati Gas Limited, Gandhinagar

Appeal of the Revenue is partly allowed for statistical purposes

ITA 1533/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Feb 2022AY 2010-11
For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Shri Mohd Usman, CIT DR &
Section 250(6)

…or crop of potatoes— However, the plant was kept in operational condition— Expenses relating to cold storage plant allowed by AO—Depreciation could not be disallowed" c. Capital Bus Service (p) Ltd vs. CIT, High Court of Delhi (1980) 17 CTR (DEL) 155 : (1980) 123 ITR 404 (DEL) : (1980) 4 TAXMAN 309 Depreciation—Allowability—Buses used for not more than 30 days—Buses kept ready by the owner for use in the business though the same could not be put to use for more than 30 days due to reason beyond assessee's control—Buses can be said to have been used throughout the year for the purposes of allowing depreciation I d…

Naturol Biochemicals and Foods Limited(Now Known As Kaleesuwari Refinery and Industry Pvt Ltd ), Hyderabad vs. Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad

In the result, appeal of the assessee is allowed in above terms

ITA 760/HYD/2018[2014-15]Status: DisposedITAT Hyderabad08 Oct 2021AY 2014-15

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahuassessment Year: 2014-15 Natural Biochemicals & Vs. Asst. Commissioner Of Foods Ltd. (Now Known As Income-Tax, Kaleesuwari Refinery & Circle – 16(1), Industry Pvt. Ltd.), Hyderabad. Hyderabad. Pan – Aabcn 7337H (Appellant) (Respondent) Assessee By: Shri Psrvv Surya Rao Revenue By: Shri Yvst Sai Date Of Hearing: 27/09/2021 Date Of Pronouncement: 08/10/2021

For Appellant: Shri PSRVV Surya RaoFor Respondent: Shri YVST Sai
Section 143(1)Section 143(3)Section 32(1)

…ore contended that the claim of depreciation ought to be allowed. In support of the claim for allowance of depreciation, several authorities were relied upon by the assessee, including the judgment of this Court in Capital Bus Service Pvt. Ltd. Vs. CIT (1980) 123 ITR 404. 5. The CIT(Appeals) examined the contentions in detail and recorded the following findings : a) The assessee was engaged in the manufacture of printed circuit boards and for the assessment years 2000-01, 2001-02, 2002-03 and 2003-04 it had turnover amounting to Rs.0.3 crores, Rs.0.55 crores, Rs.1.87 crores and Rs.0.68 crores respectively. In the…

Dhanyata Enterprises Private Limited, New Delhi vs. DCIT Circle-7(2), New Delhi

In the result, appeal of the Assessee is partly allowed

ITA 404/DEL/2020[2014-15]Status: DisposedITAT Delhi24 Sept 2021AY 2014-15

Bench: Shri R.K. Panda

For Appellant: Shri Rohit Tiwari, AdvocateFor Respondent: Shri R.K. Gupta, Sr. D.R
Section 57

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “SMC” : DELHI [THROUGH VIDEO CONFERENCING] BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA.No.404/Del./2020 Assessment Year 2014-2015 Dhanyata Enterprises The DCIT, Circle-7(2), Private Limited, C-233, C.R. Building, ITO, Lower Ground Floor, vs. Defence Colony, I.P. Estate, New Delhi – 110 024. New Delhi – 110 002. PAN AADCD3204F (Appellant) (Respondent) For Assessee : Shri Rohit Tiwari, Advocate For Revenue : Shri R.K. Gupta, Sr. D.R. Date of Hearing : 31.08.2021 Date of Pronouncement : 24.09.2021 ORDER This appeal filed by the Assessee is directed against the Ord…

Income Tax Officer, Ward-17(2), Hyderabad vs. Elgen (India) Private Limited, Hyderabad

In the result, appeal of the revenue is allowed

ITA 244/HYD/2019[2015-16]Status: DisposedITAT Hyderabad30 Apr 2021AY 2015-16

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahuassessment Year: 2015-16 Income-Tax Officer, Vs. Elgen (India) Pvt Ltd., Ward - 17(2), Hyderabad. Hyderabad. Pan – Aaace 8520C (Appellant) (Respondent) Revenue By: Shri Rohit Mujumdar Assessee By: Shri M. Poorna Chander Rao Date Of Hearing: 15/03/2021 Date Of Pronouncement: 30/04/2021

For Appellant: Shri M. Poorna Chander RaoFor Respondent: Shri Rohit Mujumdar
Section 143(3)

…rged that ground and contended that depreciation on machinery not actually put to use is allowable on the theory of passive user accepted by the courts. He once again cited Delhi High Court's decision in the case of Capital Bus Service (P.) Ltd. v. CIT [1980] 123 ITR 404. 42. Shri D.K. Sharma, the learned Departmental Representative relied on the decisions of the Tribunal for the preceding three assessment years and pointed out that Delhi High Court's decision in the case of Capital Bus Service (P.) Ltd. (supra) had been duly considered in the Tribunal's order for the assessment years 1979-80 and 1980-81. He subm…

Asian Mills Pvt.Ltd., Ahmedabad vs. The Addl.CIT, Range-1, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 1397/AHD/2015[2011-12]Status: DisposedITAT Ahmedabad02 Mar 2021AY 2011-12

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 1397/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 Asian Mills Pvt. Ltd., A.C.I.T., 104, Sakar Iii, Vs. Range-1, Opp. Old High Court, Ahmedabad. Ashram Road, Ahmedabad-380014. Pan: Aabca8236G & आयकर अपील सं./Ita No. 1531/Ahd/2015 "नधा"रण वष"/Asstt. Year: 2011-2012 D.C.I.T., Asian Mills Pvt. Ltd., Circle-1(1)(1), Vs. 104, Sakar Iii, Ahmedabad. Opp. Old High Court, Ashram Road, Ahmedabad-380014. Pan: Aabca8236G

For Appellant: Shri S.N. Soparkar, Sr. Advocate with Shri Parin Shah, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 194Section 194CSection 194C(6)Section 194C(7)Section 40Section 6Section 7

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 ( Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. 21. Being aggrieved by the order of the ld. CIT-A, the Revenue is appeal before us. 22. The learned DR before us vehemently supported the order of the AO. 23. On the other hand, the before us contended th…

M/S. K.B.Mehta Construction Pvt.Ltd., Ahmedabad vs. Dy.Commissioner of Income Tax, Circle-2(1)(2), Ahmedabad

In the result, the appeal of the assessee is partly allowed

ITA 2010/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad19 Aug 2020AY 2012-13

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedआयकर अपील सं./Ita No. 2010/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 M/S. K.B. Mehta Construction Pvt. Ltd., D.C.I.T., 509, Milestone, Vs. Circle-2(1)(2), Opp. T.V. Tower, Ahmedabad. Thaltej, Ahmedabad.

For Appellant: Shri Tushar P. Hemani, A.RFor Respondent: Shri Dileep Kumar, Sr.D.R

…the assessee is eligible for depreciation at the rate of 15% for the simple reason that the vehicles were ready to use. Asstt. Year 2012-13 12 25.2 In holding so we draw support and guidance from the judgment of Hon’ble Gujarat High Court reported in [2001] 251 ITR 133, where it was held as under: The settled position in law is that it is not necessary that the machinery must be used for a particular number of days so as to be entitled to depreciation, but it requires that it should be used for the purpose of business or profession or vocation. The trial run of the machinery is obviously for the purpose of busi…

Ishwar Builders Pvt Ltd, New Delhi vs. DCIT Circle-12(2), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 3387/DEL/2019[2015-16]Status: DisposedITAT Delhi04 Dec 2019AY 2015-16

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2015-16]

For Appellant: Shri I.P. Bansal, AdvFor Respondent: Shri S.N. Meena, Sr. DR

…has further advanced Rs. 65 lakhs towards land at Chandan Hola, Delhi which means that the assessee was, in fact, carrying out business activities during the year under consideration. 22. The Hon'ble High Court of Delhi in the case of Capital Bus Service 123 ITR 404 has held that the only condition for allowability of depreciation is that the business should not have been closed out once for all and that the assessee should demonstrate that hopes of the business being revived are alive and real. 23. In light of the decisions of the Hon'ble High Court as mentioned elsewhere, the assessee was in fact, engag…

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 63/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2013-14

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 1885/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2014-15

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

Dy.Commissioner of Income Tax Circle-1(3), Ahmedabad vs. Kifs Pvt.Ltd., Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 914/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2012-13

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

Kifs Securities Pvt. Ltd., Ahmedabad vs. The ACIT, Circle-1(3), Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 786/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2012-13

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

The Dy. CIT., Circle-3, Ahmedabad vs. Khandwala Integrated Financial Services Pvt. Ltd, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 932/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2010-11

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

Kifs Securities Ltd., Ahmedabad vs. The Jt.CIT, Range- 3, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 643/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2010-11

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…

The ACIT, Circle-3, Ahmedabad vs. Kifs Securities Limited, Ahmedabad

In the result Ground No.9 of the revenue is allowed for

ITA 2882/AHD/2014[2011-12]Status: DisposedITAT Ahmedabad29 Nov 2019AY 2011-12

Bench: Hon'Ble Justice P.P.Bhatt & Hon'Ble Manish Borad

Section 111ASection 143(3)Section 14ASection 43B

…rds the A.O's observation that the appellant failed to establish that the vehicles were used by the company, it is seen that there are various judicial pronouncements to the effect that use means kept ready for use and not actually use. The case laws cited at 123 ITR 404 (Delhi), 170 Taxman 407 (MP), 187 Taxman 442 (Mad), 201 Taxman 666 (P & H), 198 Taxman 470 & 199 Taxman 273 are in favour of the appellant. Moreover, no material has been brought on record to show that the vehicle expenses claimed were not genuine. Having considered the facts of the matter and the case laws on the issue impugned disallowance of…