Dismissed

Commissioner of Income Tax-Iii Aayakar Bhavan v. Shri Mahendrakumar Kesrimal Tated Nagpur.

Bombay HC29 Mar 2007ITL/91/2004

Case brief

AI extract

What is this about?

Revenue filed this appeal against ITAT order allowing higher depreciation to an individual for vehicles given on hire. The court found the Tribunal's finding supported by evidence and dismissed the appeal.

What did the court decide?

Appeal dismissed with no order as to costs.

What the court decided

Commissioner of Income Tax-Iii Aayakar Bhavan Vs Shri… — Income Tax | Bombay HC (2007)

¶1

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR INCOME TAX APPEAL NO.91 OF 2004

¶2

Office Notes, Office Memoranda of Court's or Judge's orders Coram, appearances, Court's orders of directions and Registrar's orders

¶3

Mr.Anand Jaiswal, Advocate for the Appellant.

¶4

CORAM : J.P. DEVADHAR & B.P. DHARMADHIKARI, JJ.

¶5

DATED : 29TH MARCH, 2007.

¶6

P.C. :

¶7

This appeal is filed by the Revenue under Section 260A of the Income Tax Act, 1961 against the order of the ITAT dated 29/04/2004 in ITA No.260/Nag/2002 relating to AY 1988-89.

¶8

The assessee is an individual engaged in the business of trading in chemicals and industrial salt on wholesale basis. The assessee owned five truck tankers. The assessee claimed higher depreciation on the said vehicles on the ground that the said vehicles were used in the business of running on hire. Rejecting the claim of the assessee, the Assessing Officer held that the vehicles given by the assessee to Janata Chemicals under an agreement for transportation of goods purchased by the assessee is not sufficient to hold that the assessee was

¶9

engaged in the business of giving the vehicles on hire. The CIT (A) upheld the order of the Assessing Officer.

¶10

On further appeal filed by the assessee, the Tribunal set aside the orders passed by the lower Authorities and held that the assessee was entitled to higher depreciation inter-alia on the ground that the vehicles owned by the assessee were registered with the RTO as Public Carriers and that there was an transport agreement between the assessee and Janata Chemicals under the Free on Road (FOR) contract for transporting the goods purchased by the assessee from Nagda to Nagpur. The Tribunal held that in any FOR contract risk of any damage to goods till delivery of the goods is with the hirer and, therefore, in the present case, it could be said that the assessee had given the vehicles on hire.

¶11

On a query raised by this court, Mr.Jaiswal, Advocate appearing on behalf of the Revenue showed us the written submissions filed by the assessee before the Assessing Officer wherein it is stated that during the assessment year in question, the assessee had given the vehicles on hire to several other third parties also. 5. In this view of the matter, the finding recorded by the Tribunal that the assessee is engaged in the business of giving the vehicles on hire cannot be faulted. No substantial

¶12

question of law arises from the order passed by the Tribunal. The appeal is, thus, dismissed with no order as to costs.

¶13

Judge Judge.

¶14

agk/

Commissioner of Income Tax-Iii Aayakar Bhavan v. Shri Mahendrakumar Kesrimal Tated Nagpur.

Case brief

What is this about?

What did the court decide?

What the court decided

Commissioner of Income Tax-Iii Aayakar Bhavan v. Shri Mahendrakumar Kesrimal Tated Nagpur.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Shri Sikandar S/O Bhura Kashyap Vs Divisional Caste Certificate Verification Committee Thr. Its Secretary and 2 Others

The Commissioner of Income Tax,Nagpur Vs M/S Abhijeet Iron Processors Pvt. Ltd.

The Commissioner of Income Tax,Nagpur Vs Abhijit Iron Processors P. Ltd.

The Commissioner of Income Tax-Ii Vs Neeraj Kumar Bajaj,Wardha

Gangaram Nemaji Tambare Vs the Collector and Election Officer and 4 Ors.

Omprakash Jagdishprasad Agrawal Vs the Assistant Commissioner of Income Tax.