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Issues:
- Appeal against order of CIT(A) for assessment year 1990-91 - Condonation of delay in filing appeal - Claim of depreciation on trucks and trailers used for transporting vehicles - Disagreement on whether trucks and trailers qualify for higher rate of depreciation - Reference under section 255(4) of the Income-tax Act, 1961 Analysis: 1. The appeal before the Appellate Tribunal concerned the department's challenge against the order of CIT(A) for the assessment year 1990-91. The appeal was filed 24 days beyond the stipulated time limit, but the delay was condoned on merits based on an application and arguments presented by the department's representative. Consequently, the appeal was admitted for further consideration. 2. The case revolved around the claim of depreciation on trucks and trailers utilized by an assessee-company for transporting Maruti vehicles. The assessee asserted a 50% depreciation on these vehicles, which were also used for plying goods on hire during their return journey. The CIT(A) allowed the depreciation by treating the trucks and trailers as public transport vehicles, a decision upheld by the Appellate Tribunal after thorough examination of the facts and circumstances. 3. A dissenting opinion was presented by a Member of the Tribunal, raising concerns about the eligibility of the trucks and trailers for higher depreciation rates. The dissenting Member argued that the vehicles were not used for running them on hire as required for special depreciation rates. The Member referred to specific legal provisions and case law to support the argument that the main business activity did not align with the criteria for claiming higher depreciation. 4. The disagreement led to a reference under section 255(4) of the Income-tax Act, 1961, to the President of the Tribunal. The reference questioned whether, considering the facts and circumstances of the case, the assessee was entitled to the higher rate of depreciation applicable to motor lorries and similar vehicles. This reference aimed to resolve the conflicting interpretations and legal positions presented by the Tribunal Members. 5. Another Member of the Tribunal provided a detailed analysis, emphasizing that the trucks and trailers were primarily utilized for hiring out to the public, rather than solely for the assessee's business of dealing in Maruti vehicles. The Member examined documentary evidence, including registration certificates and financial records, to support the conclusion that the vehicles qualified for the higher rate of depreciation. The Member highlighted the consistent treatment of depreciation in previous assessment years and the nature of the assessee's transport business to justify the allowance of the higher depreciation rate. 6. Ultimately, the Member concluded that the assessee met the criteria for claiming the higher rate of depreciation on the trucks and trailers, dismissing the departmental appeal. The comprehensive analysis highlighted the factual and legal basis for the decision, emphasizing the proper utilization of the vehicles for public transport purposes and the consistency in treatment across assessment years.
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