Law:

Section:

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate; of - While estimating income of assessee-company, depreciation had been allowed on contract work undertaken by it - Whether assessee's separate claim of depreciation on vehicles purchased could be allowed - Held, no Facts The assessee-company was undertaking contract work. For the relevant assessment year, while estimating its income for the contract work, the depreciation was allowed to the assessee. Further, the assessee separately claimed depreciation on the vehicles purchased. The Tribunal rejected the assessee's claim. On reference: Held Once depreciation had been taken into consideration, the assessee could not get double advantage by claiming it separately from the contract work. Accordingly, the Tribunal was justified in taking the aforesaid view. JUDGMENT Agrawal, J. - At the instance of the assessee, the following question has been referred under sub-section (2) of section 256 of the Income-tax Act, 1961 ('the Act'). "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in rejecting the claim of depreciation amounting to Rs. 1,44,669 on the new trucks purchased in the year under consideration and also on W.D.V. of the old trucks, etc., when full details were filed in the shape of Nos. of trucks and date of purchase?" This reference is confined to the year 1969-70. 2. The assessee is a private limited company, whose accounting period ends on 31st October. During the year in question, the business of the assessee consisted of repair work, manufacture of pumps and transport of sugarcane and transport contract in Nepal with the S-P.R. Project. 3. In connection with the contract work, the gross receipt was shown at Rs. 5,46,805 against which the profit shown was Rs. 34,527. In the explanation, the assessee claimed that on account of bad condition and hilly area, abnormally high expenses were spent for the operation and repairs. The ITO was not satisfied with the explanation and the accounts submitted by Rs. 20,000 to the contract work (sic) and bring the rate to 10 per cent. The assessee claimed depreciation on the vehicles purchased. The ITO disposed…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492