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- Depreciation rate for trucks and dumpers used in business and for hire Analysis: The High Court of Rajasthan addressed the issue of depreciation rate for trucks and dumpers used in business and for hire. The assessee claimed depreciation at 40 per cent, but the Income-tax Officer restricted it to 30 per cent as the vehicles were not used for public transport. The Appellate Assistant Commissioner increased the rate to 40 per cent based on a previous decision. However, the court noted that the decision relied upon had been overruled. The court found that the vehicles were used for the assessee's own business, not public transport, thus not justifying the higher depreciation rate. The court considered the arguments presented by both parties. The assessee's reliance on previous tribunal decisions and other cases was not deemed relevant as the factual position of vehicle usage was clear. The court emphasized that the assessee did not raise the transport business argument earlier, and the Income-tax Officer's findings supported this. The court also dismissed the plea to remit the matter back to the Tribunal based on another case, as the question referred was decided in line with the previous ruling against higher depreciation rates. Ultimately, the court ruled in favor of the Revenue, holding that the Tribunal erred in allowing depreciation at 40 per cent instead of the appropriate 30 per cent for the trucks and dumpers used by the assessee in its business and for hire. The decision was based on the vehicles' actual usage for the assessee's business rather than public transport, as required for the higher depreciation rate.
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