No development rebate is allowable in respect of Fork-Lift-Trucks as these are "Road Transport Vehicles". - Income Tax - 1011/CBDT

INSTRUCTION NO. 1011/CBDT Dated : September 24, 1976 Section(s) Referred: 33 Statute: Income - Tax Act, 1961 Reference is invited to Board' Instruction No. 617*, dated 13th September, 1973 clarifying that no development rebate is allowable in respect of Fork-Lift-Trucks as these are "Road Transport Vehicles". 2. The Board had examined the question whether Dumpers and Tippers will fall within the category of "Road Transport vehicles" and the opinion of the Ministry of Law on this point was forwarded to Commissioners of Income-tax under Board's letter** F.No. 202/34/72-I.T.(A.II), dated 15th March, 1975. In the light of the said opinion, the question relating to allowance of development rebate in respect of Fork-Lift Trucks has been re-considered. 3. A Fork-Lift-Truck is a power-driven truck with an arrangement of steel prongs which can lift, raise up high and carry heavy packages and stack them where required. A Fork-Lift Truck is a multi-purpose machinery and is used for lifting as well as transporting materials from place to place either within a factory or from one location to another. 4. "Motor vehicle" has been defined in section 2(18) of the Motor Vehicles Act, 1939 as under:- "Motor vehicle" means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or (a vehicle of a special type adapted for use only in a factory or in any other enclosed premises)." A "motor vehicle" is required to be registered with the Transport authorities under the provisions of the Motor Vehicles Act, 1939. The definition of "motor vehicle" does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises. In view of the use to which a Fork-Lift Truck is used upon roads outside the factory premises or is registered with the transport authorities for being plied as a road transport vehicle. The Fork-Lift Truck will be a road transport vehicle. As such, the decisive test as to whether a Fork-Lift Truck is a road transport vehicle or not, will, therefore, depend upon the use to which it is ordinarily put by the assessee.