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TMI Blog1996 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee-company earns hire for such carrying of goods in its own trucks and trailors and which business the assessee is carrying on since its inception whether the Tribunal was justified in holding that the trucks are not used in a business for running them on hire and thereby reducing the rate of depreciation already allowed at the higher rate of 40 per cent. to 30 per cent. ? 2. Whether the business of transportation of goods by road, where an assessee books goods at its office premises for transportation thereof by trucks to destination or lifts such goods direct from the party's godown/factory for such transportation and in the process uses its own trucks for such transportation from booking point to destination and charges freight (hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer reducing the depreciation at the rate of 30 per cent. on the trucks was cancelled. Being aggrieved, the Revenue preferred an appeal before the Income-tax Appellate Tribunal. The Tribunal was of the opinion that since the assessee did not use those trucks for the purpose of running them on hire, the depreciation admissible would be at 30 per cent. in view of the clear provision of the depreciation table. Therefore, the Tribunal reversed the finding of the Commissioner of Income-tax (Appeals) and restored the order of assessment made by the Assessing Officer. The assessee requested the Tribunal to refer the questions for the opinion of this court under section 256(1) of the Act which was, however, refused. Thereafter, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir goods with the assessee-company from one place to another on payment of hire charges. Learned counsel also submits that the assessee-company does only the business of running the vehicles on hire. Shri Joshi, learned counsel for the Revenue, on the other hand, opposed the submission of learned counsel for the assessee. According to him, these motor vehicles belonging to the assessee-company are not used for running them on hire. The assessee simply carries on the business of transportation of goods, therefore, the assessee is entitled to the benefit under entry 9 of the Appendix I, Part 1, item III-D. Entry 9 as submitted by Shri Joshi, is also quoted below : "Motor buses and motor lorries other than those used in a business of runni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother and there may be one person who may take the service of one vehicle for transportation or there may be many. But, in our opinion, it does not make any difference. For illustration, there may be some other businesses where they may use their own fleet of vehicles and use it in their own business. So, for instance, a tea garden having a business of tea manufacture, plantation and sale of tea, and for the purpose of that business, the tea garden may have some motor vehicles, motor lorries for transportation of goods for one place to another, that use of vehicles cannot be said to be used in the business of running them on hire. Those vehicles are used for the purpose of the business but in the case of a transporter, the business is of r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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