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TMI Blog2000 (11) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... cles which are coming to the assessee's godown/showroom in the long trucks and trailers. After delivering the cars/vehicles, these trucks and trailers must go back empty but the assessee is sending the goods though these trucks and trailers on their return journey. The assessee claimed the depreciation of 50% on these trucks and trailers. The assessee received hire charges for plying the trucks and trailors on hire for which all necessary documents (bills and vouchers, octroi etc.) were submitted before the Assessing Officer but the Assessing Officer has not allowed the same. In appeal the CIT(A) has allowed the depreciation on trucks and trailers by treating them as public transport vehicles. 4. After hearing both the sides at length and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der :--- "III - Machinery and Plant 2. (ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire." We have to find out the correct meaning of the phrase "running them on hire". In my opinion, if the vehicle is used in ones own business it does not satisfy the test of running it on hire. The position remains the same even if the vehicle is partly used on hire. In the facts of the assessee's case it is not clear as to what is the percentage of the user on hire vis-a-vis the user in own business. However, admittedly, the assessee is not in transportation business and the vehicles in question have been acquired for the purpose of assessee's own business of carrying on Maruti vehicles from the factory of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is a dealer in Maruti vehicles and also carries on business in certain other lines. Certain trucks and trailers owned by the assessee-company were utilised for the purpose of carrying the Maruti vehicles from their factory at Faridabad to Calcutta. During the return journey, the assessee used those trucks and trailers on hiring basis and received hire charges thereon. All necessary documents like bills and vouchers, etc. in support of receipt of hire charges of the trucks and trailers were submitted before the Assessing Officer. The assessee claimed higher rate of depreciation at 50% on the trucks and trailers by contending that the said trucks and trailers were used by it in the business of running them on hire. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :--- (i) Sardar Stones' case ; (ii) Manjeet Stone Co.'s case ; (iii) Veeneer Mills' case ; and (iv) Income-tax Commissioner v. Anupchand Co. [1999] 239 ITR 466 (MP) 4. On the other hand, the ld. counsel for the assessee submitted that the trucks and trailers are not being used by the assessee in its own business. A reference has been made in this connection to the written submissions of the assessee dated 9-3-1994 before the Assessing Officer in connection with assessment year 1991-92 to the effect that although the assessee-company owns these trucks and trailers, they, however, stand leased out to M/s. Sanjiv Jindal Pvt. Ltd., who carry on the business of transportation of cars and other vehicles from Faridabad to Calcutta on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of its business of hiring out vehicles in the capacity of a public carrier. In support of this contention, reliance has been placed on a judgment of the Hon'ble Gauhati High Court in the case of CIT v. A.B.C India Ltd. [1997] 226 ITR 733. It is also pointed out that both in assessment year 1989-90 as well as in 1991-92, the Assessing Officer himself has allowed higher rate of depreciation on the same trucks and trailers. It is thus argued that the Department should follow a consistent approach to the matter and there is no reason by the Department to depart from the beaten track in one of the years only. In support of his contention that consistency should be maintained in the approaches of the Department, the ld. counsel for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. Hence, although incidentally the trucks and trailers belonging to the assessee-company itself might have been utilised for that purpose, the user of the said trucks and trailers in that regard was, however not in the course of the assessee's own business but rather as a transporter hiring out its vehicles to outsider M/s. Sanjiv Jindal Pvt. Ltd. In respect of this activity, the assessee-company has duly received freight charges also. There is no doubt about the fact that the main business of the assessee is as a dealer of Maruti vehicles. But that, however, does not preclude it from carrying on other lines of business also. The Assessing Officer himself has admitted in the assessment order that the assessee is in the transp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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