Itta/73/2004 Of Commissioner Of Income Tax Ii v. M/S Utkal Manufacturing And Service Ltd

HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND HON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A No.73 of 2004 JUDGMENT:-(Per Hon’ble Sri Justice L.Narasimha Reddy) The respondent purchased six Tippers in the year 1993,which become relevant for the assessment year 1994-95. UnderSection 32 of the Income Tax Act, the assessee would qualify for100% depreciation on the value of the Tippers if they have beenput to use for more than 180 days. The Assessing Officer did notallow the claim and ultimately, the matter landed before theVisakhapatnam Bench of the Income Tax Appellate Tribunal inI.T.A.No.174/Vizag/98. Through its order, dated 25.08.2003, theTribunal took the view that the Tippers became roadworthy on29.09.1993 and they were put to use far exceeding 180 days in therelevant assessment year. Hence, this appeal. Heard Sri S.R.Ashok, learned Senior Standing Counsel forthe appellant and Sri A.V.Krishna Kaundinya, learned counsel forthe respondent. It is not in dispute that the assessee would be entitled toclaim 100% depreciation on the cost of the Tippers if they are putto use for a period exceeding 180 days in the relevant assessmentyear. Though the Assessing Officer expressed doubt, the Tribunalon verification of the record, found that the vehicles were put to use for more than 180 days. Firstly, it is a pure question of factand secondly, the Department is not able to demonstrate as tohow the finding of the Tribunal is not correct. Therefore, the appeal is dismissed. There shall be no orderas to costs. Miscellaneous petitions, if any, filed in this appeal shall alsostand disposed of. _______________________ L. NARASIMHA REDDY, J Date:03.12.2014 ________________________ CHALLA KODANDA RAM, J kdl