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2002 (11) TMI 76 - HC - Income TaxBusiness Of Leasing Out Commercial Vehicles - "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee was entitled to depreciation allowance under section 32 of the Act at 40 per cent. in respect of the commercial vehicles, owned by it but leased out to a third party?" - in some of the cases, the Tribunal has remanded the matters back to the Assessing Officers to examine whether the leased out vehicles had been actually used by the lessee in the business of hire. In the light of the view taken by us, we do not find any infirmity in such a direction. As a matter of fact, wherever there is a doubt it must be examined whether the leased out vehicles are actually being used in the business of hiring. Only in such a situation depreciation at the higher rate of 40 per cent. or 50 per cent., as the case may be, is to be allowed under the relevant entry in Appendix I to the Rules. - For the foregoing reasons, we do not find any infirmity in the view taken by the Tribunal on the question formulated above.
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