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Issues:
Whether the Income Tax Appellate Tribunal was correct in allowing depreciation at the rate of 40% on trailers and loaders used in the business of transportation. Analysis: The High Court considered the issue of depreciation on trailers and loaders in the context of income earned from transportation services. The Tribunal had allowed depreciation at 40% based on the assessee's separate income from transportation. The Court noted that higher depreciation is admissible on motor lorries used in the appellant's business, as clarified in Board's Circular No. 609. Since the transportation income was reflected in the profit and loss account, the Court found that the assessee was entitled to depreciation at the rate of 40%. The Court emphasized that when there is no dispute regarding the income earned from giving trailers and loaders on hire, the assessee is entitled to the claimed depreciation rate. The Court found no reason to interfere with the Tribunal's decision, as there was no evidence presented to show that the finding was perverse. Consequently, the Court dismissed the appeal, concluding that no substantial question of law arose from the case. In summary, the High Court upheld the Tribunal's decision to allow depreciation at the rate of 40% on trailers and loaders used in the business of transportation, based on the income earned from providing these vehicles on hire. The Court's analysis focused on the applicability of higher depreciation rates for motor lorries used in the appellant's business, as supported by relevant evidence and legal provisions.
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