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TMI Blog2011 (4) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances of the case, the Income-tax Appellate Tribunal was correct in law in treating the transport vehicle as consisting of two parts, viz., cylinder and vehicle and allowing depreciation on the cylinder at 100 per cent. and not at 40 per cent. ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in holding that the cylinder mounted on the vehicle which was used for the transport of liquefied petroleum gas was liable for depreciation at 100 per cent. and not at 40 per cent. ? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal ought to have held that the transport vehicle was inseparable and two different rates of deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, i.e., cylinder/tanker, chassis and cabin. As per Appendix I, Part I of the Income-tax Rules, 1962, the depreciation allowable under section 32 of the Income-tax Act, 1961, for gas cylinders including valves and regulators is 100 per cent. whereas for transport vehicle, it is 40 per cent. at the relevant time. 7. The arguments advanced on behalf of the assessee, is the entire item shall be treated as the cylinder and the argument of the Revenue, is that the entire item is transport vehicle since it is registered as motor vehicle under the Motor Vehicles Act. 8. As per item III(ii)F(4) of Part I of Appendix I read with rule 5 of the Income-tax Rules depreciation allowable at relevant time for gas cylinders including valves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was wrong in holding that the assessee was not entitled to depreciation at 40 per cent. on crane mounted on motor truck. 11. The learned counsel, therefore, wishes us to apply the same analogy and to treat the gas cylinder as transport vehicle for which allowable depreciation is 40 per cent. 12 .We are unable to agree. The context in which the Division Bench of the Gujarat High Court expressed the view in the judgment aforecited is not similar or analogous to the present context. It was the case where cranes are not mentioned specifically as an independent item in the Schedule which led the Tribunal to categorise the same generally as a machinery. 13. The Gujarat High Court disapproved the approach of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Delhi High Court dealing with identical facts and having regard to the situation similar to one in the present case held as follows (page 74) : "There is no dispute that the item in question was gas cylinder, though no doubt a big one, the expression 'gas cylinder' used in Appendix I to the Income-tax Rules does not mention the size of the gas cylinder nor does it say that the gas cylinder should be only for cooking purpose or for any other particular purpose. Hence, all gas cylinders are entitled to depreciation at the rate of 100 per cent.If we interpret the expression 'gas cylinder' to mean 'cooking gas cylinder', we will be really adding words to the statute which is not permissible." 17. In the instant case before us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the depreciation can be claimed at 40 per cent. If we resort to such an interpretation, it is nothing but adding words to the statute and conveying a different meaning contrary to the legislative intent. 18. For the foregoing reasons, we affirm the view taken by the learned Income-tax Appellate Tribunal, Hyderabad Bench "A", and hold that the liquefied petroleum cylinder mounted on the chassis of the truck for all purposes is a gas cylinder including valves and regulators as defined in Appendix I, Part I, item III(ii)F(4) of rule 5 of the Income-tax Rules, 1962. The assessee is, therefore, entitled to claim depreciation at 100 per cent. 19. We accordingly answer the reference in terms stated hereinabove. There shall be no or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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