9911796707
TMI Blog1993 (3) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... initiate proceedings in respect of the issue in question as it was subject matter of appeal before the Commissioner of Income-tax (Appeals). Hence the Commissioner erred in setting aside the assessment as made under section 143(3) of the Act and directing the Assessing Officer to reframe it. The Commissioner erred in holding that on the facts and circumstances of the case of the assessee, applicable rate of depreciation as admissible in respect of DLY/DLZ Cars, coaches, pick up Vans, etc., was 30% and not 40% as granted in the assessment under section 143(3) of the Act. Therefore, the observations made by the Commissioner in arriving at such a conclusion in the operative paragraph of the order and in assuming the facts of the assessee's ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a business of running them on hire and which is squarely applicable to the facts of the present case for the reason that as per the Income-tax Rules though no depreciation claim is admissible on imported cars, if the car is used, as in the instant case, for hiring to tourists depreciation claim is fully admissible on the actual cost. The Central Board of Direct Taxes circular also clearly supports the case of the assessee. On merit itself, the order impugned deserves to be set aside, even though the Commissioner of Income-tax also does not have jurisdiction to exercise his revisional power in a matter of this kind as the statutory provision should not be used for more difference of opinion by the Commissioner of Income-tax from the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be allowed. It also further adds that where a tour operator or travel agent uses such vehicles owned by him in providing transportation services to the tourists, higher rate of depreciation should be allowed on such vehicles. No appreciable argument has been advanced by the Revenue as to how the C.B.D.T. circular is not applicable to the facts of the instant case. The intention behind the legislative provision is only to discourage use of foreign cars for the purpose of business or profession, but in order to provide the tourism industry, an exception has been made in the case of foreign motor cars used in a business of running them on hire for tourists, as in the instant case, on which full depreciation is allowable. Hence as is evident f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1991 enhanced the claim from 30% to 40% as the vehicles were used for hire purposes and by relying on the Central Board of Direct Taxes circular cited supra and that such enhancement was also given effect to by the Department. 7. Thus, under these circumstances, we are of the opinion that the DLY/DLZ cars and coaches can be given the higher rate of depreciation at 40%. 8. As far as the pick-up-van is concerned, it is not known clearly as to whether it is serving the same purpose as the said cars do by carrying passengers as it gives an impression that such vans may be intended for use otherwise than carrying passengers, say, like carrying luggage, etc. Hence, as far as the pick-up vans are concerned, we are remitting this issue to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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