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BHARGAV D. KARIA, NIRAL R. MEHTA
Principal Commissioner Of Income Tax 1 – Appellant
Versus
S. D. Material Handlers Pvt. Ltd. – Respondent
ORDER :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Rudram Trivedi for learned advocate Mrs. Kalpana Raval for the appellant – Revenue.
2. By this Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, “the Act”), the appellant – Revenue has proposed the following substantial questions of law arising from the Judgement and Order dated 21st December 2023 passed by the Income Tax Appellate Tribunal, Surat (for short, “the Tribunal”) in ITA No.499/SRT/2023 for the Assessment Year 2013-14:
2. Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is right in allowing depreciation 30% on cranes ignoring the fact that it is nowhere provided in the Income tax Act, 1961 as well as in the Income tax Rules, 1967 that cranes are motor vehicles and these are eligible for the higher depreciation rat
Cranes used in hiring businesses are entitled to higher depreciation rates under the Income Tax Act, regardless of their classification as motor vehicles.
The central legal point established in the judgment is that the determination of a 'sale' under the Maharashtra Value Added Tax Act, 2002 depends on the effective control and possession of the goods,....
The cranes and hoppers used by the petitioner do not meet the definition of a motor vehicle under Section 2(28) of the Motor Vehicles Act.
Heavy Earth Moving Machinery, intended for off-road use only, do not qualify as 'motor vehicles' under the Motor Vehicles Act and are not subject to taxation, as confirmed by expert certifications.
Machines structurally adaptable for road use are motor vehicles, requiring registration and tax under relevant acts, regardless of exclusive use within private premises.
Effective control over services rendered is the key factor in determining tax classification under VAT, reaffirming that possession retention by the service provider precludes deemed service status.
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