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TMI Blog1986 (4) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... on the pay loader @ 30 per cent and also granted the assessee's claim for additional depreciation in terms of s. 32(1)(iia). As regards the assessee's claim for depreciation on truck @ 40 per cent the ld. CIT (A) negatived the claim and held that depreciation was rightly allowed at 30 per cent. Against this order, the assessee has preferred appeals Nos. 172 of 1985 claiming depreciation on trucks @ 40 per cent. While the Revenue has preferred ITA No. 275 of 1985 challenging the CIT's order regarding depreciation and additional depreciation on the Terex pay loader. 3. We have heard the ld. counsel for the assessee and the ld. departmental representative and have perused the records. We will first take up the question of the rate of depreciation admissible on the pay loader, which is the subject matter of appeal for both years. The functions performed by the pay loader are described by the ITO as under: "That the pay loader is only used for loading coal either from dump of the coal or at the railway siding to the wagons for quick loading which is not used for other purposes. That the payloader is not at all used in heavy construction work such as dams, tunnels, canals etc., or it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to Singrauli Rly. Station superline. Rs. 0.90 4. Loading into wagons by pay loaders within free loading item of wagon. Rs. 4.40 From the above, it is clear that the pay loader is not at all used either in dams, tunnels canals or it is not used in open cast mining. It is only used for loading of coal either from the yard or from the railways siding for wagon loading the coal and not vehicle used for transportation of coal or the road. I, therefore, allow depreciation on terex pay loader @ 10 per cent as against claimed @ 30 per cent." 4. The said machine is being used by the assessee at Singrauli Coal mines of the Central Coal Field Limited, a Government of India undertaking, for lifting coal in the yard of the mines and loading the same in dumpers and then performing a similar function at the railway siding for loading the coal in the railway wagons. The ld. CIT (A) has in a detailed and well reasoned order held that the machine in question is an earth moving equipment and is being used in the mining area for loading coal. According to him, therefore, the machine falls in cl. III(D)(8) of Appendix I of the IT Rules and was, therefore, entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1641 dt. 24th July, 1985 issued by the CMST, which we produce below: "Subject: Cranes mounted on mobile transport vehicles Rate of depreciation Instructions regarding. 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. 302/41/72, ITA, 11) dt. 13th Sept., 1973) already lays down that for Tracks joint are fitted with diesels Engine as prime mover hydraulic brakes and pneumatic tyres would be classified under item No. III of Appendix I of the ITR 1960 and would be entitled for the rate of depreciation at 30 per cent. It has been observed that the cranes counted on mobile transport vehicles used for lifting weights etc. are also fitted with diesel engine as the price covers hydraulic brakes and pneumatic tyres and are also registered with licensee by the regional transport authorities. It has therefore been decided that such cranes should be classified under item No. III(ii)(9) Part I of Appendix I to the IT Rules 1962. The cranes of the type mentioned above are therefore entitled for depreciation at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This contention has no force. The proviso clearly indicates that certain types of machinery have been specifically excluded from its operation. Among them are items like office appliances and road transport vehicles mentioned in cl (b). It the word 'installed' meant immovable machinery then cl. (b) was totally un-necessary. Installation simply means making a machine really for use and nothing more. In our view the pay loader in question was a machinery installed by the assessee and was, therefore entitled to additional depreciation. The second ground in Revenue's appeal also therefore, fails and the Revenue's appeal has to be dismissed in toto. 11. We are not left with the assessee's appeal for asst. yr. 1981-82 in which it is claimed that the depreciation on truck should have been allowed @ 40 per cent instead of 30 per cent. According to the assessee, the trucks in question were being used by the assessee for transporting coal of Central Coal Fields Ltd. and therefore, falls in category (1-A) of Appendix 1 of the IT Rules, which reads as under: "Motor buses, motor lorries, and motor taxies used in a business of running those on hire." The rate of depreciation prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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