Commissioner of Income Tax vs Indocount Finance Ltd.

This appeal by the revenue u/s 260A of the Income Tax Act is directed against order dated 10-9-2002 passed by the Income Tax Appellate Tribunal,. New Delhi in ITA No. 2592 & 1041, /Del/ 99 pertaining to the assessment years 1994-95 and 1995-96.

The short issue sought to be raised in the appeal is as to whether an assessed, engaged in the business of leasing out commercial vehicles for being run on hire, is entitled to depreciation at the higher rate of 40%.

A similar issue has already been decided by a Bench of this court of which one (D.K. Jain, J.) was a member, in Commissioner of Income Tax Vs. Bansal Credits Limited, Pratap Singh, MGF Limited, Motor and General Finance Ltd., MGF India Limited, Rungta Irrigation Ltd. and Anuvrat (P) Limited, . In that case it was held that a vehicle which has been leased out for use in the business of it on hire would be entitled to depreciation at the rate of 40%, as provided in item III (2)(ii) of Part A of Appendix I to the Income Tax Rules, 1962.

In view of the said decision no substantial question survives for consideration. We accordingly decline to entertain the appeal.