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TMI Blog1998 (8) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, seeking reference of the following questions, viz. "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has erred in allowing higher rate of depreciation on tippers ignoring the fact that the same are not included in the items of machinery and plant for which higher rate of depreciation is admissible ? 2. Whether, on the facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation on tippers at 40 per cent. The Assessing Officer restricted the depreciation on tippers to 25 per cent. On appeal, the Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. On further appeal to the Tribunal, the Tribunal held that the tippers are nothing but motor lorries with extra facility of hydraulic system which facilitates unloading of material and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretation of sections 28 to 41 of the Act. Rule 5 of the Income-tax Rules, 1962, reads as follows : "5. Depreciation.---(1) Subject to the provisions of sub-rule (2), the allowance under clause (ii) of sub-section (1) of section 32 in respect of depreciation of any block of assets shall be calculated at the percentages specified in the second column of the Table in Appendix I to these rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery. The main argument advanced by learned counsel for the Revenue is that there is no dispute that the tippers which are used by the assessee fall under the category of motor lorries, but item III of sub-item 2(ii) of Appendix I is applicable only to motor cars which are used in the business of the assessee and since the assessee is running them on hire and also using for his own agricultural o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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