Depreciation on vehicles cannot be disallowed merely because such vehicles have been registered in the name of director of an assessee-company:

AO disallowed depreciation on cars on the count that such cars were bought and registered in the name of the director of the assessee-company. On appeal, CIT(A) observed that payment in respect of such cars was made by the assessee. Such cars were sued for the business of the assessee. Accordingly, CIT(A) allowed the claim of depreciation in such cars. On Revenue’s appeal, Hon’ble ITAT also observed that assessee had made payments of such cars. The said cars were included in the block of assets of the assessee and were used for assessee’s business. In light of the above, Hon’ble ITAT also held that there was no reason to interfere with the order of CIT(A). Accordingly, Revenue’s appeal was dismissed.

[DCIT vs. Nandan Exim Ltd - ITA Nos.601 & 225/Ahd/2011 and 2419/Ahd/2010]