ASHOKA STONE CRUSHING INDUSTRIES Vs. INCOME TAX OFFICER.

JUDGEMENT

(1.) THE assessed is aggrieved of the order dated 5 -3 -1986 of the learned Appellate Asstt. Commissioner for the assessment year 1981 -82.

(2.) THE only question involved in this appeal is whether the assessed was entitled to claim depreciation in respect of a truck. The facts, which are not in dispute are as follows. The assessed firm purchased a truck chassis on 12 -2 -1981 for Rs. 1,84,261 where after insurance was paid was paid on 29 -2 -1981. It was made into an half truck through Shri Ali Sher s/o Abdul Majid who completed that job by 14 -3 -1981, i.e., within the accounting period relevant to the assessment year in question. The fitness certificate was however issued in April 1981, taxes were paid on 28 -4 -1981 and registration No. HRG 9506 was allotted to it by the concerned Transport Authority of Haryana only in May 1981 i.e., after the close of the accounting period relevant to the assessment year in question. However, even then the assessed claimed depreciation on this truck @30 per cent amounting to Rs. 55,278. The case set up by the assessed was that in fact the said truck was plied for 2 days during the assessment year in question i.e., on 29th and 30th March, 1981 by Shri R. P. Mauji, a Contractor of Ferozepur -Jhirka, who hired it from the assessed for this purpose. The assessed filed an affidavit dated 14 -12 -1983 of Shri Mauji whose statement was also recorded by the Income Tax Officer on 30 -12 -1984. The assessed had also filed an affidavit of the body -builder Shri Ali Sher of Palwal wherein he had deposed that he had charged Rs. 15,000 for the work which included Rs. 221.25, the cost of 125 litres of diesel for testing etc. and for carrying the truck from Palwal to Ferozepur -Jhirka. However, the Income Tax Officer took the view that the truck in question was not used the assessed prior to 31 -3 -1981. He disbelieved the affidavit of Shri Mauji. In this connection, he was also influenced by the fact that in the account of this truck, purchase of diesel for Rs. 308 was debited only on 12 -4 -1981, miscellaneous expenses of Rs. 15 were debited on 15 -5 -1981 and salary of driver amounting to Rs. 750 was also debited on 6 -5 -1981 i.e., all after the close of the accounting period relevant to the assessment year. He also observed that no receipts in support of the income from the truck were shown by the assessed during the accounting period relevant to the assessment year under consideration. He, Therefore, rejected the claim of depreciation.

(3.) IN appeal, the learned Appellate Asstt. Commissioner upheld the order of the Income Tax Officer. The assessed had filed before the learned AAC a certificate dated 7 -5 -1985 from the Truck -operators Goods Transport Union, Ferozepur -Jhirka (Gurgaon) regarding the registration of the truck in question with them in the last week of March 1981. He noticed that assessed had two other trucks Nos. HRG 9099 and HRG 9432 and it may have used truck No. 9432 for transporting the material. He also disbelieved the affidavit and statement of Shri Mauji who was not maintaining any books of account. Before us on behalf of the assessed Shri J. P. Jain, Advocate, reiterated the submissions made on behalf of the assessed before the Income Tax authorities vide written submissions. He also relied upon the following decisions :