Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2002 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2002 (7) TMI 36 - RAJASTHAN HIGH COURT"Whether, Tribunal was justified in holding that the drilling machines used by the assessee should be treated as earth-moving machinery, falling under entry (4) of item No. III-D of Part I of Appendix I to the Income-tax Rules, 1962, and, therefore, entitled to depreciation at 30 per cent.?" - Learned counsel has placed reliance on a reported decision of this court, dated May 11, 2002, rendered in CIT v. Bhola Ram, wherein this court has held that rig and compressors mounted on a lorry used for drilling do not fall in the category of heavy machinery or motor lorry under item No. III(ii)D(4) of Part I to the Income-tax Rules, 1962. The court further held that in such circumstances, the claim of depreciation at the special rate of 30 per cent. cannot be allowed in respect of such rig and compressors. In our view, the instant case is squarely covered by the judgment of this court referred to above. - Consequently, this appeal is allowed and the order of the Income-tax Appellate Tribunal, and that of the Commissioner of Income-tax (Appeals) are set aside.
|