COMMISSIONER OF INCOME-TAX Vs. BIMALCHAND JAIN

JUDGEMENT

(1.) THE following reference has been made by the Income -tax Appellate Tribunal, Jaipur Bench, Jaipur (hereinafter referred to as 'the Tribunal') at the instance of the Revenue in R.A. No. 352/JP/88(arising out of ITA No. 850 /JP/87) pertaining to assessment year 1984 -85, for opinion of the Court: Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to depreciation on trucks at the rate of 40 per cent as against 30 per cent allowed by the ITO?

(2.) THE assessee is a registered firm engaged in purchase and sale of limestone and transportation work on behalf of Kota Thermal Power Project. The assessee firm owned two trucks and claimed depreciation at the rate of 40 per cent on the ground that same were hired by the outsiders from whom total receipts of Rs. 28,940 were shown. The Income -tax -Officer was of the view that the assessee was not engaged in the transportation business, therefore, not admissible for higher rate of depreciation, i.e., 40 per cent. On an appeal, the Appellate Assistant Commissioner allowed the assessee's claim and upset the order of the Income -tax Officer. On further appeal before the Tribunal, the Tribunal confirmed the order of the Appellate Assistant Commissioner.

(3.) WE answer the reference in favour of the Revenue and against the assessee, accordingly.