9911796707
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Issues:
1. Allowance of depreciation on dumpers for assessment years 1974-75 and 1975-76. 2. Disallowance of development rebate on dumpers. 3. Claim for depreciation at 30% on dumpers for the assessment year 1980-81. 4. Entitlement to development rebate on dumpers. 5. Classification of dumpers as road transport vehicles or machinery/tools. 6. Consistency in Revenue's stand on dumpers as road transport vehicles. Analysis: 1. The High Court addressed the issue of allowance of depreciation on dumpers for the assessment years 1974-75 and 1975-76. The Income-tax Officer initially allowed depreciation at the rate of 30% on the dumpers under the assumption that they were entitled to such depreciation as road transport vehicles. However, the claim for development rebate on the dumpers was disallowed. The Tribunal later accepted the assessee's claim that the dumpers were machinery/tools and allowed the development rebate. The Income-tax Officer rectified the assessment order based on this decision, leading to a dispute on the depreciation allowance. 2. The court also examined the disallowance of development rebate on the dumpers. The Revenue contended that since the dumpers were classified as road transport vehicles, the assessee was not entitled to development rebate. However, the Tribunal held that the dumpers were tools used for the construction work, allowing the development rebate. This decision was challenged by the Revenue, leading to a reference question on the entitlement to development rebate. 3. Another issue involved the claim for depreciation at 30% on dumpers for the assessment year 1980-81. Despite the assessee's claim that the dumpers were road transport vehicles, the Tribunal's decision from a previous assessment year influenced the disallowance of the depreciation claim. The Tribunal's decision was upheld, leading to a reference question on the entitlement to depreciation. 4. The High Court also analyzed the entitlement to development rebate on the dumpers. The Tribunal's decision that the dumpers were tools of the business and not road transport vehicles allowed the development rebate. This decision was challenged by the Revenue, leading to a reference question on the classification of dumpers for the rebate. 5. The classification of dumpers as road transport vehicles or machinery/tools was a crucial aspect of the case. The court emphasized the importance of consistency in the Revenue's stand regarding the classification of dumpers. The court concluded that dumpers were road transport vehicles based on the Revenue's consistent stand, allowing the assessee to claim depreciation on that basis. 6. Lastly, the court highlighted the importance of maintaining consistency in the Revenue's stand on the classification of dumpers. The court emphasized that since the Revenue succeeded in a previous reference regarding the classification of dumpers, the assessee must succeed in the present references. The court ultimately answered the questions in favor of the assessee, allowing the claim for depreciation on the dumpers as road transport vehicles. This detailed analysis covers the various issues addressed in the judgment, providing a comprehensive overview of the court's decision on each aspect of the case.
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