Shanti Prime Publication Pvt. Ltd.
Sec. 32 of Income Tax Act, 1961 – Depreciation – Cranes used for personal construction business does not disentitle assessee to claim higher depreciation once it is shown that assessee is in the business of hiring the cranes.
Facts: “Whether Tribunal was right in confirming the order of assessee in limiting allowance of depreciation to 15% as against the claim at the rate of 30% on various types of cranes used in hiring business under Section 32?"
Held, that if the assessee is not involved in the business of hiring the vehicle on rent, then he is not entitled to claim higher depreciation under clause (2)(ii) of Entry-III of Appendix-I. There is thumping evidence on record to indicate that the assessee is involved in the business of hiring the cranes. He might be using the cranes for his personal construction business too, but that does not disentitle him to claim higher depreciation once it is shown that the assessee is in the business of hiring the cranes – PRASAD MULTI SERVICES PRIVATE LTD. Vs. DEPUTY CIT [2020] 423 ITR 542 (GUJ)