COMMISSIONER OF INCOME TAX Vs. MIRA EXIM LTD

JUDGEMENT

(1.) Revenue by these appeals under Section 260A of the Income Tax Act, 1961 (Act, for short) relating to Assessment Years 2005-06, 2006-07, 2007-08 and 2008-09 submits that the respondent company-Mira Exim Limited is not entitled to depreciation on imported cars.

(2.) Revenue relies upon clause (a) to the proviso to Section 32(1) of the Act, which reads as under:-

(3.) As per the said proviso, no deduction towards depreciation can be allowed in respect of a motor car manufactured outside India where such car was acquired by the assessee after 28th February, 1975 but before 1st April, 2001. We need not refer to exceptions carved out by the proviso because they are not applicable. It is also clear from the clause itself that an imported motor car acquired by the assessee before 1st March, 1975 and on or after 1st April, 2001 is entitled to depreciation. The dates being the criteria, the word "acquisition" by the assessee, is the core or the cornerstone of the provision.