Rate of depreciation applicable in case of wheel loaders & graders
Case Outcome: Assessee
- The Assessee had claimed depreciation at the rate of 30% on wheel loaders and wheel graders. During the assessment proceedings, the Assessing Officer disallowed the excess depreciation as the Assessing Officer opined that the rate of depreciation applicable in the case of wheel loaders and wheel graders was 15% only.
- Reliance was placed on the decision of Kolkata High Court in the case of Bothra Shipping Services vs. CIT, wherein it was concluded that the wheel loaders and graders were motor vehicles and were certainly eligible for depreciation at 30%.
- Hence, it was inferred that the wheel loaders and graders were motor vehicles and accordingly, eligible for higher rate of depreciation.
- Issue Outcome: In favour of Assessee
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