2004 (7) TMI 17

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..... motor vehicles which are given on hire would also be applicable to vehicles which are leased out?" - word 'hire' used in this entry is only meant to denote that the use of the vehicle is not by the owner himself for his own purposes, but it is given to another for use for a limited period of that other for a consideration. For the purpose of this entry there is no qualitative difference between le .....

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..... tances of the case, the Tribunal was right in law in holding that the rate of depreciation applicable to motor vehicles which are given on hire would also be applicable to vehicles which are leased out?" The respondent herein, while filing its return of income for the assessment year 1991-92, has claimed higher rate of depreciation on leased out trucks, which is not disputed. The Assessing Offic .....

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..... ounsel for the respondent. It is not controverted by learned counsel for the parties that in identical facts and circumstances, a Division Bench of this court in its decision reported in CIT v. Madan and Co. [2002] 254 ITR 445, has held as follows: "Owners of vehicles who used it for their own purposes are allowed to claim depreciation at the normal rates. Owners of vehicles mentioned in the e .....

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..... the assessee to claim the benefit of the higher depreciation. The lease of the vehicle enables the lessee to have possession of the vehicle, and have the right to use the vehicle as the lessee wishes, subject to the terms of any contract between the parties. The lessee during the period of user is also likely to have to maintain the vehicle subject to the terms of the contract between the parties. .....

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..... n. For the purpose of this entry there is no qualitative difference between lease of the vehicle for a specified period for consideration and letting the vehicle on hire for short duration on payment of hire charges." In the light of the decision cited supra, we are of the view that the respondent/assessee is entitled to the higher rate of depreciation. Therefore, the questions of law referred t .....

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