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1 - 10 of 16 (0.21 seconds)Section 234B in The Income Tax Act, 1961 [Entire Act]
Section 234C in The Income Tax Act, 1961 [Entire Act]
Section 207 in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Section 208 in The Income Tax Act, 1961 [Entire Act]
The Companies Act, 1956
Section 219 in The Income Tax Act, 1961 [Entire Act]
Section 211 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax vs Madan And Co. on 7 September, 2001
The assessee earns lease rent by letting out those vehicles and by allowing the lessees to use those vehicles. The assessee did not run those vehicles on hire nor does it carry on the business of running them on Hire. However, if the vehicles were used by the lessees in the business of running them on hire then the matter certainly needs re-examination by the assessing officer because, one has to look to the purpose and object of the above entry. As laid down by the Madras High Court in the case of CIT v. Madan & Co. (2002) 254 ITR 445 (Mad), vehicles, which were let out to the hirers/lessees who are in the business of running them on Hire, are likely to undergo rough use as compared to vehicles owned by and used for personal purpose of the owner. it is in recognition of this fact that Hire rate of depreciation is provided for. In the circumstances, we do not wish to interfere with the order of the Tribunal remanding the matter back to the assessing officer to decide whether the lessees were in the business of running the vehicles on hire. Hence, the above question is answered in the affirmative, i.e., in favour of the assessee and against the department.