TMI Blog1962 (12) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... rical goods, acts as agents for distribution of Burmah-Shell products. It also maintains a fleet of cars and lorries which it hires out, solely we are informed, for the use of officials of the Burmah-Shell Co. The hire receipts from these vehicles have been returned and assessed under the head of business from the assessment year 1954-55 onwards. During the calendar years 1956 and 1957, relevant to the assessment years 1957-58 and 1958-59, respectively, the assessee purchased and used for this part of its business new cars and lorries. Development rebate under section 10(2)(vi) of the Act was claimed. In addition thereto, depreciation at the rate of 25 per cent. under the Income-tax Rules was also claimed. The Income-tax Officer denied the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee yielding income does not come within the scope of any of the other heads set out in section 6 that the tax is payable by the assessee under the head of income from other sources under section 12. There is nothing which prevents the assessee from carrying on as a business the hiring out of vehicles. Merely for the reason that section 12(3) also envisages hiring out machinery and plant as a source of income, it does not follow that in every case where hiring of machinery and plant is concerned it should be taken for assessment under section 12. Section 12 (1) itself excludes such activities from the scope of section 12, if they are included under any of the preceding heads. It follows from the context of the provision that where an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The first question is accordingly answered in the negative and in favour of the assessee. It is not denied that in terms rule 8 applies to the present case. The relevant clauses thereof are (q) and (r) which specify the class of the asset and the rate at which the percentage of allowance is to be calculated. The entry (q) is motor-cars and the entry (r) covers motor-taxis . The rate of depreciation for motor-cars is 20 per cent while that for motor-taxis is 25 per cent. The claim of the assessee that the vehicles in question should be regarded as taxis eligible for 25 per cent. depreciation seems to us to be unacceptable. A taxi as ordinarily understood is a vehicle which is available for every hirer. But in a case where vehicles are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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