Veeneer Mills v. CIT

201 ITR 764Reported decision1993#10319 most cited

What is Veeneer Mills v. CIT authority for?

Depreciation is not allowed at a higher rate if the dominant purpose for which an asset is used is for the assessee's own business, not for hiring out.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2017 to 2025.

Also referred to as

Veeneer Mills v. CIT · 201 ITR 764 · depreciation · higher rate of depreciation · own business · hiring out · dominant purpose

Sections most often in play

Section 115BAASection 147Section 37Section 69CSection 153CSection 69A

Issues it is cited on

section 10(2)(xv)section 115baasection 10(2)explanation to section 37prohibited by lawsection 129credit for tdsbusiness connectionblock of assetsput to useborrowed satisfactionsection 30

Judgments citing Veeneer Mills v. CIT

Mahalaxmi Infracontract Limited, Ahmedabad vs. The Dy.CIT, Central Circle-1(4), Ahmedabad

In the result, appeal of the assessee is allowed

ITA 1702/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad12 Mar 2025AY 2017-18

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Dhinal Shah, A.RFor Respondent: Shri V Nandakumar, CIT DR & B.P. Srivastava
Section 10(2)(xv)Section 3(2)Section 3(3)Section 3(5)Section 37

…8/Ahd/2024 & 1702/Ahd/2024 DCIT vs. Mahalaxmi Infracontract Ltd. & Mahalaxmi Infracontract Ltd. vs. DCIT Asst. Years –2020-21, 2021-22 & 2017-18 - 7– 350 and judgment passed by the Hon’ble Karnataka High Court in the case of Veener Mills vs. CIT, reported in 201 ITR 764. Finally, the Ld. AO attempted to distinguish the judgment passed by the Hon’ble Apex court in the case of Gupta Global Exim (supra) to this effect that as the Hon’ble Supreme Court has allowed depreciation at higher rates for motor lorry used in the business of running them on hire. The basic test would be whether the assessee is having the tran…

Deputy Commissioner of Income Tax (Central Circle)-1(4), Ahmedabad vs. Mahalaxmi Infracontract Limited, Ahmedabad

In the result, appeal of the assessee is allowed

ITA 1578/AHD/2024[2021-22]Status: DisposedITAT Ahmedabad12 Mar 2025AY 2021-22

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Dhinal Shah, A.RFor Respondent: Shri V Nandakumar, CIT DR & B.P. Srivastava
Section 10(2)(xv)Section 3(2)Section 3(3)Section 3(5)Section 37

…8/Ahd/2024 & 1702/Ahd/2024 DCIT vs. Mahalaxmi Infracontract Ltd. & Mahalaxmi Infracontract Ltd. vs. DCIT Asst. Years –2020-21, 2021-22 & 2017-18 - 7– 350 and judgment passed by the Hon’ble Karnataka High Court in the case of Veener Mills vs. CIT, reported in 201 ITR 764. Finally, the Ld. AO attempted to distinguish the judgment passed by the Hon’ble Apex court in the case of Gupta Global Exim (supra) to this effect that as the Hon’ble Supreme Court has allowed depreciation at higher rates for motor lorry used in the business of running them on hire. The basic test would be whether the assessee is having the tran…

Deputy Commissioner of Income Tax (Central Circle) -1(4), Ahmedabad vs. Mahalaxmi Infracontract Limited, Ahmedabad

In the result, appeal of the assessee is allowed

ITA 1577/AHD/2024[2020-21]Status: DisposedITAT Ahmedabad12 Mar 2025AY 2020-21

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Shri Dhinal Shah, A.RFor Respondent: Shri V Nandakumar, CIT DR & B.P. Srivastava
Section 10(2)(xv)Section 3(2)Section 3(3)Section 3(5)Section 37

…8/Ahd/2024 & 1702/Ahd/2024 DCIT vs. Mahalaxmi Infracontract Ltd. & Mahalaxmi Infracontract Ltd. vs. DCIT Asst. Years –2020-21, 2021-22 & 2017-18 - 7– 350 and judgment passed by the Hon’ble Karnataka High Court in the case of Veener Mills vs. CIT, reported in 201 ITR 764. Finally, the Ld. AO attempted to distinguish the judgment passed by the Hon’ble Apex court in the case of Gupta Global Exim (supra) to this effect that as the Hon’ble Supreme Court has allowed depreciation at higher rates for motor lorry used in the business of running them on hire. The basic test would be whether the assessee is having the tran…

Asstt. Commissioner of Income Tax, Central Circle-1(4), Ahmedabad vs. Mahalaxmi Infracontract Private Limited, Ahmedabad

ITA 486/AHD/2023[2018-19]Status: DisposedITAT Ahmedabad31 May 2024AY 2018-19

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

For Appellant: Shri S. N. Divatia & Shri B. K. Patel
Section 143(2)Section 143(3)

…running of motor Lorries on hire. 7.6 Now coming on judicial pronouncements, Hon'ble Rajasthan High Court in case of CIT vs. Sardar Stone 215 ITR 350, and in case of CIT vs. Manjeet stone company and Hon'ble Karnataka high Court in case of Veener Mils vs CIT 201 ITR 764, has held that just for mere reason that vehicles are occasionally hired, and hire amount is nominal (although assessee does not have any transportation) cannot be construed that vehicles were used for running them on hire. Assessee in its submission has stated as follows: ITA Nos. 484 to 486/Ahd/2023 (ACIT Vs. Mahalaxmi Inferacontract Pvt. Ltd.…

Asstt. Commissioner of Income Tax, Central Circle - 1(4), Ahmedabad vs. Mahalaxmi Infracontract Pvt. Ltd., Ahmedabad

ITA 485/AHD/2023[2017-18]Status: DisposedITAT Ahmedabad31 May 2024AY 2017-18

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

For Appellant: Shri S. N. Divatia & Shri B. K. Patel
Section 143(2)Section 143(3)

…running of motor Lorries on hire. 7.6 Now coming on judicial pronouncements, Hon'ble Rajasthan High Court in case of CIT vs. Sardar Stone 215 ITR 350, and in case of CIT vs. Manjeet stone company and Hon'ble Karnataka high Court in case of Veener Mils vs CIT 201 ITR 764, has held that just for mere reason that vehicles are occasionally hired, and hire amount is nominal (although assessee does not have any transportation) cannot be construed that vehicles were used for running them on hire. Assessee in its submission has stated as follows: ITA Nos. 484 to 486/Ahd/2023 (ACIT Vs. Mahalaxmi Inferacontract Pvt. Ltd.…

Asstt. Commissioner of Income Tax, Ahmedabad vs. Mahalaxmi Infracontract Private Limited, Ahmedabad

ITA 484/AHD/2023[2015-16]Status: DisposedITAT Ahmedabad31 May 2024AY 2015-16

Bench: Shri Ramit Kochar & Ms. Madhumita Royआयकर अपील सं./I.T.A. Nos. 484, 485 & 486/Ahd/2023 ("नधा"रण वष" / Assessment Years : 2015-16, 2017-18 & 2018-19) बनाम/ Assistant Commissioner Mahalaxmi Infracontract Of Income Tax Private Limited Vs. Central Circle-1(4), B-21, Corporate House, Ahmedabad Opp-Pakwan-Ii, S. G. Highway, Bodakdev, Ahmedabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aagcm4615E (Appellant) .. (Respondent) Assessee By : Shri S. N. Divatia & Shri B. K. Patel, A.Rs. Shri Sudhendu Das, Cit. Dr Revenue By : सुनवाई क" तार"ख / Date Of 22/01/2024 & Hearing घोषणा क" तार"ख /Date Of 31/05/2024 Pronouncement

For Appellant: Shri S. N. Divatia & Shri B. K. Patel
Section 143(2)Section 143(3)

…running of motor Lorries on hire. 7.6 Now coming on judicial pronouncements, Hon'ble Rajasthan High Court in case of CIT vs. Sardar Stone 215 ITR 350, and in case of CIT vs. Manjeet stone company and Hon'ble Karnataka high Court in case of Veener Mils vs CIT 201 ITR 764, has held that just for mere reason that vehicles are occasionally hired, and hire amount is nominal (although assessee does not have any transportation) cannot be construed that vehicles were used for running them on hire. Assessee in its submission has stated as follows: ITA Nos. 484 to 486/Ahd/2023 (ACIT Vs. Mahalaxmi Inferacontract Pvt. Ltd.…

M.Palanisamy, Coimbatore vs. ACIT Non Corporate Circle 2, Coimbatore

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 1642/CHNY/2017[2011-12]Status: DisposedITAT Chennai28 Feb 2022AY 2011-12

Bench: Shri V. Durga Rao & Shri G. Manjunatha

For Appellant: 04.01.2022For Respondent: Mr. S.Sridhar, Advocate
Section 40A(2)(a)

…or which the assessee used the trucks has been found to be for his own business and hence the assessee is not entitled to higher rate of depreciation. A similar view was expressed by the Hon’ble Karnataka High court in the case of Veeneer Mills vs. CIT [1993] 201 ITR 764 (Karn.). Relying on these decisions, the Cochin Bench 1TAT, in the case of Baliapatam Tile Works Ltd. Vs. DCIT [2014] 51 taxmann.com 47, held after considering the facts of the case that where the appellant’s business of transportation of metal is incidental to the business of sale of metal to railways / public, it cannot be held as business of r…

ACIT Non Corp Circle 2, Coimbatore vs. M.Palanisamy, Coimbatore

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 1515/CHNY/2017[2012-13]Status: DisposedITAT Chennai28 Feb 2022AY 2012-13

Bench: Shri V. Durga Rao & Shri G. Manjunatha

For Appellant: 04.01.2022For Respondent: Mr. S.Sridhar, Advocate
Section 40A(2)(a)

…or which the assessee used the trucks has been found to be for his own business and hence the assessee is not entitled to higher rate of depreciation. A similar view was expressed by the Hon’ble Karnataka High court in the case of Veeneer Mills vs. CIT [1993] 201 ITR 764 (Karn.). Relying on these decisions, the Cochin Bench 1TAT, in the case of Baliapatam Tile Works Ltd. Vs. DCIT [2014] 51 taxmann.com 47, held after considering the facts of the case that where the appellant’s business of transportation of metal is incidental to the business of sale of metal to railways / public, it cannot be held as business of r…

ACIT Non Corp Circle 2, Coimbatore vs. M.Palanisamy, Coimbatore

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 1514/CHNY/2017[2011-12]Status: DisposedITAT Chennai28 Feb 2022AY 2011-12

Bench: Shri V. Durga Rao & Shri G. Manjunatha

For Appellant: 04.01.2022For Respondent: Mr. S.Sridhar, Advocate
Section 40A(2)(a)

…or which the assessee used the trucks has been found to be for his own business and hence the assessee is not entitled to higher rate of depreciation. A similar view was expressed by the Hon’ble Karnataka High court in the case of Veeneer Mills vs. CIT [1993] 201 ITR 764 (Karn.). Relying on these decisions, the Cochin Bench 1TAT, in the case of Baliapatam Tile Works Ltd. Vs. DCIT [2014] 51 taxmann.com 47, held after considering the facts of the case that where the appellant’s business of transportation of metal is incidental to the business of sale of metal to railways / public, it cannot be held as business of r…

Bharath Beedi Works Pvt. Ltd., Mangalore vs. Joint Commissioner of Income-Tax, Mangalore

In the result, the appeal of the assessee for Assessment Year 2007-08 is also dismissed

ITA 1903/BANG/2016[2007-08]Status: DisposedITAT Bangalore29 Nov 2017AY 2007-08

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumar

For Appellant: Smt. Sheetal Borkar, AdvocateFor Respondent: Shri N. Sukumar, Addl. CIT (DR)
Section 43B

…ld. DR of revenue supported the order or authorities below. 21. We have considered the rival submissions. On page no. 8 of his order, CIT(A) has followed the judgment of Hon'ble Karnataka High Court rendered in the case of Veneer Mill Vs. CIT as reported in 201 ITR 764 wherein it was held that assessee should be engaged in business of running the vehicles on hire and if the assessee is mainly in the business of manufacturing and hiring, assessee is not entitled for higher rate of depreciation. On this issue, it is noted by AO in para no. 6 of the assessment order that as per the assessee, the vehicles in questi…

Veeneer Mills v. CIT (201 ITR 764) — Cited in 10 Judgments | BharatTax