TMI Blog1996 (9) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Rules, 1962, and is not the finding wrong, unreasonable and perverse? (ii) the assessee is entitled to depreciation at the rate of 40 per cent.?" The assessee is a partnership firm engaged in plying transport buses carrying passengers on different routes. On its buses, with regard to the assessment years, they claimed depreciation at 40 per cent. It was not granted, but granted only at 30 per cent. Such percentage (40 per cent.), it was held, would be available only for vehicles on hire. This was the view taken by the Assessing Officer for both the years. The Assessing Officer observed that the firm is a regular bus owner and vehicles are not hired, but they are utilised on regular routes on permits by charging regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contemplated in Appendix I to the Income-tax Rules, 1962. A perusal of items D9 and E(1A) of the Income-tax Rules would be relevant in this context. They are reproduced hereinafter one after the other : ------------------------------------------------------------------------------------------------ Depreciation allowance as percentage of--- (i) actual cost in the case of ocean going ships; Class of asset (ii) written down value in the case of any other asset Remarks ------------------------------------------------------------------------------------------------ I XXX XXX ---- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the position of the assessee. The question would be the manner in which vehicles are plied. The situation of relevance would be as to whether the vehicles are running on hire or not. If there is no dispute that the vehicles are run for hire in any capacity, whether as a passenger service or as a tourist service or as a taxi service, the relevant situation is the manner in which the vehicles are run which belonged to the assessee in regard to which there is a claim for depreciation. Undisputedly, the assessee is a partnership firm engaged in transport activity. The transport activity is as regards plying of transport buses carrying passengers on different routes determined by the transport authorities. The passengers who travel in such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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