Depreciation in cases of cranes mounted on mobile transport vehicles. - Income Tax - 1641/CBDT

INSTRUCTION NO. 1641/CBDT Dated: July 24, 1985 The question as to what rate of depreciation should be allowed in respect of cranes mounted on mobile transport vehicles, which are used for lifting weights etc., has been considered by the board. Instruction No.617 (F.No.202/41/72-ITA-II) dated 13th September 1973 already lays down that Fork -Lift-Trucks which are fitted with diesel Engine as the prime mover hydraulic breaks and pneumatic tyres would be classified under item. No.III (ii) D (9) of Appendix I of the Income-tax Rules, 1962 and would be entitled for the depreciation at 30% . It has been observed that the Cranes mounted on mobile transport vehicles used for lifting weights, etc., are also fitted with diesel Engines as the prime movers, hydraulic breaks and pneumatic tyres, and are also registered with and licensed by the regional transport authorities. It has therefore been decided that such cranes should be classified under item No.III(ii) D(9) part I of Appendix I to the Income-tax Rules, 1962. The cranes of the type mentioned above are therefore entitled for depreciation at the rate of 30% of their cost/W.D.V.., as the case may be. 2. These instructions may be brought to the notice of all the officers working in your charge.