9911796707
TMI Blog2005 (3) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... not taxable in the hands of the assessee-company in the year under consideration? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the disallowance of Rs. 5,80,098 on account of interest on excess levy price charged by the assessee? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in directing the Income-tax Officer to allow depreciation in the case of the trailers at the rate admissible in the case of transport vehicles even though the trailers are not motorized vehicles?" Briefly stated the facts giving rise to the present reference are as follows: The reference relates to the assessment year 1976-77. The assessee is engaged in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom April 1, 1976, the Government had created levy sugar price equalisation fund and the assessee was required to transfer the excess sugar price to the fund along with interest at the rate of 12.5 per cent, per annum from the date of realisation of the amount to the date of its transfer. This court has held that the excess levy sugar price was not taxable in the hands of the company. It has been further held that the amount of excess realization along with interest is to be deposited within the specified period after the commencement of the aforesaid Act, with effect from April 1, 1976, which in the present case does not fall in the previous year/accounting year relevant to the assessment year in question. In this view of the matter it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A conjoint reading of sections 2(16) and 2(18) of the Motor Vehicles Act, 1939, shows that "motor car" includes a trailer. Therefore, within the meaning of the Motor Vehicles Act, 1939 a trailer is a motor vehicle, although a trailer is an attachment, attached to a "motor vehicle" for the purposes of carrying goods or passengers. A trailer has been defined as any vehicle other than a side car drawn or intended to be drawn by a motor vehicle. We find that the relevant entry at that time in Appendix I to the Income-tax Rules, was under the heading of "Machinery and plant". The said entry reads as follows: "C.(7) Motor cars, motor cycles, scooters and other mopeds (N.E.S.A.)- Rate of depreciation 20 per cent." Motor buses, motor lorries, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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