| The Tax Publishers2020 TaxPub(DT) 0457 (Del-Trib) : (2020) 180 ITD 0672 INCOME TAX ACT, 1961
Section 32(1)
Clearly, vehicles were used by assessee in assessee's business of rural marketing, promotions, road shows, display advertising, etc., and assessee was not in the business of running of vehicles on hire, therefore, assessee was eligible for depreciation on vehicles at normal rate of 15%, and not at higher rate of 30%.
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Depreciation - Rate of depreciation - Assessee-company engaged in the business of rural marketing, promotions, roadshows, display advertising, etc. -
Assessee claimed depreciation @ 30% on vehicles used by it in the business of promotional activties in rural markets of India. AO restricted assessee's claim to 15%.Held: Normal rate of depreciation on vehicles is 15% as per Part A of S.No. III(2) of New Appendix I, read with rule 5 read with section 32. Higher rate of 30% is admissible under S.No.III(2) only if vehicles are used in the business of running them on hire. In the instant case, vehicles were used by assessee in assessee's business of rural marketing, promotions, roadshows, display advertising, etc., and assessee was not in the business of running of vehicles on hire, therefore, assessee was eligible for depreciation on vehicles at normal rate of 15%, and not at higher rate of 30%.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2013-14
IN THE ITAT, DELHI 'F' BENCH
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