INCOME TAX ACT, 1961

Section 32

Depreciation - Allowability - Heavy goods vehicles - Assessee produced proof with regard to put to use of vehicles

Assessee was a transport carting contractor and also engaged in construction work. It acquired three heavy goods vehicles and claimed depreciation on those vehicles @ 50%. However, the AO doubted the same. Assessee contented that the vehicles were purchased and were put to use on the same day and there was a carting trip for L & T from one site to another. But in the absence of any document report with regard to carting trip for L & T from one site to another, the AO disallowed the assessee's claim of depreciation @ 50%. Held: Mainly claim of depreciation on vehicles was disallowed on the ground that assessee could not produce any proof with regard to put to use the said vehicles. However, it was found that the assessee in support of its contention filed carting sales ledger account wherein trip of L & T from one site to another site was being mentioned. Therefore, as the vehicle was put to use and in support of its contention, the assessee submitted copies of ledger, the assessee's claim of depreciation in respect of such vehicles was allowed.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 40(a)(ia)

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