Originally posted by : ramya kinthali
	IT is clearly spelt out in text of case u posted...  Thus, an assessee leasing out motor lorries owned by him and receiving lease rentals would be entitled to higher rate of depreciation by treating the vehicles as being used in the business of running them on hire    in case of motor car thing to be checked for higher depreciation is whether end user has used it for running on hire or not so if end use is running on hire means higher rate can be claimed isn't it.....   and the wording commercial purpose i said in previous post is  for house property and machinery...

 OK, just once read the whole judgement with patience and then take a view. MAY BE I AM INTERPRETING IT WRONG, in that case please post relevant text.

Thanks

agree with first four cases , and i do fell i m wrong over there deprication is not allowed in that cases ,

but not agree with the treatment given for last four ,

cit vs goodwill india ltd-- merely because lessor lease it out to lessee higher depreciation canot be availed , but it would be available if lessee uses the vehicle for running on hire. the inference is that vehicla run  on hire would depreciate faster

 ramya , just read the question  again bcause when the assess its giving it on lease then how he can get the higher depriciation  just see above ...

again when he is giving it for a lease purpose its not his business then the same case apply

the purpose for which is lessee is using is having no relavance :- just read page 254 , tn manoharan point 4

i do think that the rate for all the 4 cases should be 15 %

and yes i m wrong in first 4 cases no deprication can be claim wheather its his business or not , its going to charge under the head house property

as per madan case law(2001) ...... lease and hire by assessee, both will have higher rate......

as per goodwill india ltd (2004)....... mere leasing , higher rate cant be claimed  . lessee should use it for runinng on hire........

Friends I have given the whole judgement in my favour and have also highlighted the relevant portions.

AGREE THAT THERE ARE CONTRADICTORY DECISIONS BY HIGH COURTS ON THIS ISSUE.

Still I think the reason cited by MADRAS HC in Madan & Co. is more genuine.

I THINK USE BY LESSEE IS NOT RELEVANT. and assessee is eligible for higher rate.

But still I am open to receive any new comments. Keep Discussing.

I URGE OTHER MEMBERS OF CCI TO TAKE PART IN THIS

ऐसा क्यो होता है कि जब कोई जोक पोस्ट करता है तो बहुत comments  आते  है but इस issue par debate ke liye  कोई नहीं है

goodwill india ltd is the latest case..... when there r conttradicting decissions go by the latest judgement.....which says if lessee uses it for running on hire higher dep can be claimed....

cit vs goodwill india ltd (2004) 268 ITR 480 (del)

plz expmain ramaya  these both u told which one to follow :-

s per goodwill india ltd (2004)....... mere leasing , higher rate cant be claimed  . lessee should use it for runinng on hire........

goodwill india ltd is the latest case..... when there r conttradicting decissions go by the latest judgement.....which says if lessee uses it for running on hire higher dep can be claimed....

i  do agree on the first  one  , mere leasing higher rate cant be claimed

as per madan case law.... mere leasing is enough for claiming higher depreciation.... because it says "leasing" is also kept at par with" hire"

but this has no relevamce now.....

because in goodwill case it is clearly spelt out tat mere leasing is not enough to claim higher rate... if lessee uses it for running on hire than lessor can claim higher rate......

going by latest judgement goodwill case stands as of now....

in simple words goodwill case stand , as of now

and we need to claim normal deprication without giving any relavance to what purpose lessee use

in short ,  lessor is going to claim 15 % wheather it use for any purpose

ALTHOUGH I COULD NOT FIND THE WHOLE JUDGEMENT OF GOODWILL INDIA LTD.

But, reference to the case of Commissioner Of Income Tax vs Bansal Credits Limited which has been used as base in GOODWILL india ltd. case gives us that use by LESSEE has to be considered.Therefore by going with that judgement we have to consider the use by lessee. Therefore I agree with Ramya Kinthali that use by lessee has to be considered now.

NOOOOOOOO

goodwill case is " mere leasing than no higher rate, higher rate can be claimed only if lessee is using it for running on hire.."

tat means if LESSEE USES IT FOR RUNNING ON HIRE than lessor CAN CLAIM higher RATE

 U R SAYING OPPOSITE.....

Yes RAMYA you are right. If lessee does not use for hire then dep. rate is 15% for LESSOR.

However, if lessee uses for hire then dep. rate is 30% for LESSOR.

BUT I PERSONALLY FEELS THAT DECISION GIVEN IN MADAN'S CASE LAW WAS RIGHT. BECAUSE THE REASONS CITED WERE VERY REASONABLE that when lessor leases his vehicle it is bound to be used in a rough manner and therefore higher depreciatiion can be claimed.

BUT My personal opinion has no value in law so we have to go by the judgement of GOODWILL INDIA LTD. read with BANSAL CREDITS LTD.

Also, I would like to convey one more thing:

that none of afore discussed decisions have been confirmed by SUPREME COURT. and the decisions of HIGH COURT is binding only on jurisdcitional assessee i.e. Decision of delhi HC is binding on the assessee coming within the jurisdiction of DELHI HC only.

Hence the decision is not applicable in all cases and THEREFORE SCOPE OF LITIGATION STILL EXISTS.

Thanks