22 January 2014
On perusing section 32 of the IT Act, the words referred to are motor cars, motor buses, motor lorries, motor taxies, commercial vehicles etc. The Act prescribes 30% depreciation for motor buses, motor lorries and motor taxies used in a business of running them on hire. Nowhere in the Act or the Rules, JCB is mentioned. Part-III sub-item No.1 of the Table specifies that machinery and plant other than those covered by sub-items (2), (3) and (8) shall be entitled to claim depreciation @ 15%. Since JCB does not fall under sub-item (2), (3) & (8) of Part-III, it has to be necessarily included in sub-item (1) for which the permissible rate of depreciation is 15%.
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