The Tax Publishers2021 TaxPub(DT) 0026 (Gau-Trib)

INCOME TAX ACT, 1961

Section 32

Since the substantial income, i.e., 2/3rd of assessee's income is from hiring business, it qualifies for higher depreciation @ 30%.

Depreciation - Higher rate - Plant and machinery -

Assessee claimed that since the substantial income, i.e. 2/3rd of its income was from hiring business, it qualifies for higher depreciation @ 30% on plant and machinery. Whereas AO restricted depreciation @ 15% as against the claim made by assessee. Held: Since the assessee's substantial income was from hiring business, relying on the decision held in case of CIT v. Bansiwala Iron & Steel Re-rolling Mills (2005) 134 Taxmann 124 (Raj) : 2005 TaxPub(DT) 73 (Raj-HC), assessee's claim for higher depreciation should be allowed.

Followed:CIT v. Bansiwala Iron & Steel Re-rolling Mills (2005) 134 Taxmann 124 (Raj) : 2005 TaxPub(DT) 73 (Raj-HC).

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2016-17



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