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2018 (10) TMI 296 - HC - Income TaxHigher rate of Depreciation on vehicles used for hire purposes - AO denied depreciation @ 30% - whether subject dumper and Volvo do not fall within the expression of motor buses, motor lorries and motor taxies, ? - Held that:- It is not in dispute that the assessee has earned rental income from these vehicles. The requirement of the provision stands satisfied, in wake of such finding recorded by none other than the Assessing Officer himself. The Commissioner (Appeals) has tried to non-suit the assessee on the ground that the subject dumper and Volvo do not fall within the expression of motor buses, motor lorries and motor taxies, as provided in Entry No. III (3)(ii) of Part-A of Appendix-1. It is pertinent to note that the depreciation for motor buses, motor lorries and motor taxies has been provided under the Head-III Machinery and Plant, wherein Clause (ii) of Entry No.III (3) deals with the motor buses, motor lorries and motor taxies, while Clause 3(iii) concerns with commercial vehicles. As such, if the vehicles in question are not held to be falling in subclause (ii) of Clause (3), they would well fall in sub-Clause (iii) of the Clause 3 of Entruy No. III of Appendix-1, entailing even higher rate of depreciation to the assessee. The expression used in sub-clause (ii), namely motor buses, motor lorries and motor taxies is having wide amplitude and the term motor lorries used therein, would take in its sweep the subject vehicles, i.e., dumper and Volvo. Thus as the vehicles in question were used for hire purposes, the assessee cannot be denied depreciation @ 30%. - Decided in favour of assessee.
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