COMMISSIONER OF INCOME TAX Vs. JAYACHANDRAN K R

JUDGEMENT

(1.) THE assessee is running a private hospital at Cochin. For the assessment year 1984 -85, the assessee filed a return of income which included income arising from the hire of an ambulance van. The assessee claimed depreciation at the rate of 40 per cent. on the ambulance van. This was allowed in the original assessment. The Commissioner of Income -tax, however, invoked the provisions of Section 263 and held that the correct rate of depreciation to be applied to the ambulance van was only 30 per cent. and accordingly set aside the order of the Assessing Officer and directed him to modify the depreciation allowance.

(2.) BEING aggrieved by the order of the Commissioner of Income -tax, the assessee went in appeal before the Tribunal. The Tribunal held that the assessee is entitled to a higher rate of depreciation, namely, 40 per cent., and set aside the order of the Commissioner of Income -tax.

(3.) THE Tribunal has dismissed the reference application. Hence, the present petition has been filed under Section 256(2) of the Income -tax Act.