1994 (10) TMI 48

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..... private hospital at Cochin. For the assessment year 1984-85, the assessee filed a return of income which included income arising from the hire of an ambulance van. The assessee claimed depreciation at the rate of 40 per cent. on the ambulance van. This was allowed in the original assessment. The Commissioner of Income-tax, however, invoked the provisions of section 263 and held that the correct r .....

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..... e Income-tax Rules, the assessee is entitled to higher rate of depreciation at the rate of 40 per cent. ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that 'in the case of the assessee' the 'condition' of 'used in business of running them on hire' is satisfied when the ambulance van is kept for the use on hire and so plied and is .....

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..... t on hire by the assessee. The Tribunal has rejected the contention. It has held that the ambulance van is kept by the assessee for the purpose of being used on hire and it is so plied. The plying of the ambulance van on hire itself constitutes the business of the assessee though it may be incidental to the running of the hospital. It has also observed that one business can be advantageously combi .....

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