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TMI Blog2001 (4) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer allowed the depreciation at the rate of 25 per cent. only and disallowed the sum claimed on depreciation of Rs. 28,201 on the basis that the truck was used mainly for his own business. Aggrieved by the order of the Assessing Officer, an appeal was preferred before the Commissioner of Income-tax, Jabalpur, assailing the disallowance. The appeal was on the ground that the truck has been used by the appellant by giving it on hire and also used for business purpose. Thus, on the finding that the truck was used for hire as well as for business, depreciation of 40 per cent. was allowed, The Revenue filed an appeal before the Income-tax Appellate Tribunal. The Tribunal has allowed the appeal relying on the decision of this court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s own business. Also the finding recorded by the Income-tax Appellate Tribunal is that the truck is mainly used for the assessee's own business and from the statement filed by the appellant it is clear that mainly the truck is used for the assessee's own business. The decision of this court in the case of Income-tax Commissioner v. Anupchand and Co. [1999] 239 ITR 466 where this court considered the question as under : "We have to interpret the provisions of entry No. III(ii)E(1A) of Part I of Appendix I appended to the Income-tax Rules, 1962, which reads as under : '(1A) Motor buses, motor lorries and motor taxis used in a business of running them on hire (N. E. S. A)-40 per cent.' A plain reading of this provision shows that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. Similar view was taken in another decision of the Rajasthan High Court in the case of CIT v. Manjeet Stone Co. [1991] 190 ITR 183. The Karnataka High Court has also taken the same view in the case of Veeneer Mills v. CIT [1993] 201 ITR 764, wherein the assessee was a manufacturer of plywood and used to transport the timber which is the raw material in the manufacture of plywood through its own lorries. The dominant purpose of these lorries was the transportation of the material belonging to the assessee in connection with its manufacturing work. However, on some occasions, when the lorries were idle, they were given on hire. In this case, their Lordships observed that the facts speak for themselves. The provision is only attracte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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