COMMISSIONER OF INCOME TAX Vs. PEARL LEASING LTD

JUDGEMENT

(1.) ALTHOUGH the service report is awaited but having regard to the fact that the issue raised in this appeal under S. 260A of the IT Act, 1961 (for short 'the Act'), by the Revenue, stands concluded by a decision of this Court in CIT vs. Bansal Credits Ltd. dt. 13th Nov., 2002, in ITA No. 16/2002 [reported at (2003) 179 CTR (Del) 23-Ed.] and other connected matters, we feel that it would not be necessary to direct service of fresh notice on the respondent-assessee.

(2.) THE only issue raised in the appeal is whether an assessee, who is engaged in the business of leasing out motor lorries, etc. but not using these vehicles in the business of hiring himself would be entitled to higher rate of depreciation under Appendix I to the IT Rules, 1962. In the afore- mentioned judgment we have held that for availing higher rate of depreciation what is mandatory is the user of the vehicle in the business of hiring, whether it is by the assessee-the lessor or the lessee.