Sajjan Tawde (38 Points)
23 October 2024
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5148 Points)
Replied 23 October 2024
To qualify for this scheme, the following conditions must be met:
1. The person should be engaged in the business of plying, hiring, or leasing of goods carriages.
2. The total number of goods carriages owned by the person should not exceed 10.
However, it's important to note that: -
The person must opt for this scheme by filing Form ITR-4. -
The person will not be required to maintain detailed accounts or records. È
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177840 Points)
Replied 23 October 2024
On careful perusal of the Circular issue by the CBDT explaining the provisions of
the Finance Act, 1994, more particularly at the time of introduction of section 44AE of
the Act, it is seen that presumptive scheme of income, more particularly in respect of
trucks which principle function is as a goods carriage. In the case of JCB, the principal
function is not carriage of goods. In our opinion, by no stretch of imagination, JCB can
be termed as ‘good carriage'. We, therefore, hold that the income from JCB cannot be
computed by applying section 44AE of the Act……”
Under section 2 of the Motor Vehicles Act,
there are distinct definitions for motor car, contract carriage, goods carriage, heavy goods
vehicle, heavy passenger motor vehicle, light motor vehicle, motor cycle etc. and last but
not the least ‘Motor vehicle. The general definition of motor vehicle as per section 2(28)
of the Motor Vehicles Act, 1988, cannot be fitted into the Income-tax Act. This definition
is an extensive definition which includes all kinds of mechanically propelled vehicles
including a trailer. The scope of the Motor Vehicles Act is to bring into its fold all kinds
of moving objects plying on the roads under its ambit so as to provide safety measures
and regulate traffic. Therefore, any objects which moves on the road by itself such as
harvesting combines, road layers, cranes on wheels, etc. requires registration under the
Motor Vehicles Act. However, while claiming depreciation under the Income-tax Act,
only the relevant provisions of the Income-tax Act has to be applied.
extracted from ...file:///C:/Users/Home/Downloads/jcb_hiring_a_case_law.pdf
Also refer: https://www.caclubindia.com/experts/income-from-jcb-machine-1670419.asp
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