1979-VIL-09-ITAT-

Equivalent Citation: [1979] 8 TTJ 91

Income Tax Appellate Tribunal GAUHATI

ITA No. 198/Gau/1977

Date: 21.06.1979

INCOME TAX OFFICER.

Vs

MODI AGENCY

BENCH

Member(s)  : T. N. C. Rangarajan., Egbert Singh.

JUDGMENT

2. In the asst. order, the ITO noted that truck was in the name of one M. Choudhury who was not even a partner of the assessee firm. He, therefore, disallowed the claim for depreciation. On appeal the AAC directed that the depreciation should be allowed as the assessee invested the entire cost of the vehicle which was also utilised by the assessee for its business.

3. It is contended no behalf of the Revenue that there was on justification for the AAC to direct the ITO to allow depreciation on truck which was not owned by the assessee in view of the fact that the truck was in the name of Shri M. Choudhury It is immaterial whether the assessee firm met the cost of the truck including body building etc. It is urged that the order of AAC may be reversed and that of the ITO be restored.

4. On behalf of the assessee, it is submitted that the AAC has, with full justification allowed the claim of the assessee. It is submitted that the value of the vehicle was duly shown in the balance sheet of the assessee firm which has disclosed also income from the vehicle under transport charges. It is submitted further that all expenses like registration fees, insurance premium etc., were met by the assessee. It is contended on behalf of the Assessee that the AAC was fully justified in following the decision of the Tribunal. Amritsar Bench, Amritsar in ITA No. 1327 of 1971-72 dt. 10th Sept., 1975. The assessee has also filed a copy of this order of the Amritsar Bench. It is, therefore, urged that the order of the AAC may be sustained.

5. We have taken into account the rival contentions of both the sides. We find that the case of the assessee under appeal is covered by the decision of the Tribunal. Amritsar Bench. Amritsar, referred to above. Respectfully following the above decision of the Tribunal, we are in agreement with the order of the AAC on this point. The assessee is entitled to depreciation on the truck. The order of the AAC is confirmed.

6. In the result, the appeal is dismissed.

 

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