TMI Blog1978 (11) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the contentions of the assessee and held that dumpers were not road transport vehicles and accordingly allowed the claim for development rebate. On a further appeal by the revenue, it was contended before the Tribunal that dumpers should be treated as road transport vehicles. The assessee contended that in the Table under the I.T. Rules, 1962, prescribing rates for depreciation dumpers have been categorised as earth moving machinery and not as road transport vehicles. It was contended further that under a circular issued by the Board of Revenue, tractors and bulldozers, etc., though road transport vehicles, were to be allowed development rebate and the same directive should apply to dumpers. The Tribunal held that motor cars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alled or, if the...... machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in clause (b)." Mr. Ray also drew our attention to the I.T. Rules, 1962, where statement of rates at which depreciation was admissible had been set out in Appendix I, Part I. The item under the general heading "Machinery and Plant" under the sub-heading 'E' read, at the material time, as follows: "(1) Earth moving machinery employed in heavy construction works such as dams, tunnels, canals, etc. (N.E.S.A.): (a) Tractors (b) Dumpers." Under another sub-heading 'M', items 4 and 5 read as follows : " (4) Motor buses, motor lorries, mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having been challenged, the assessee cannot ask the court now to hold otherwise. Mr. Sengupta cited the departmental circular relied on by the assessee, which reads as follows: "2. Development rebate is not admissible for and from the assessment year 1960-61 in respect of such vehicles as can be properly described as road transport vehicles, e.g., motor cars, motor lorries, buses, trucks, trailers, etc. The benefit of development rebate should not, however, be refused in respect of tractors, bulldozers, etc." Mr. Sengupta submitted that dumpers were specifically excluded from the said circular, and, therefore, the assessee could not obtain any assistance from the same. Mr. Sengupta also submitted that Appendix I in Part I of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the matter, namely, the resemblance of dumper with a motor lorry and nothing else. The Tribunal apparently did not consider the effect of the categorisation in Part I, Appendix I of the I T. Rules, 1962. The Tribunal also did not consider at what rate depreciation was in fact allowed in the instant case to the dumpers in question, that is, whether they were allowed depreciation in the category of earth moving machinery or in the category of ordinary motor lorries. The Tribunal did not consider the exact function of the dumpers nor did it make any enquiry as to what use the said dumpers were being put by the assessee. All these are relevant aspects of the enquiry which it will be necessary to undertake in order to arrive at the correct an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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