Commissioner of Income Tax vs Kota Sales Corpn.

On an application u/s 256(1) of the Income Tax Act, 1961, the Tribunal has referred the following question for our opinion.

"Whether on the facts in the circumstances of the case, the Tribunal was justified in holding that the assessee is entitled to depreciation at the higher rate of 40% and not 30% on the Trucks used by it for its business ?"

The assessee firm derives its income from purchase and sales of stone. It has also got mines and trucks for transportation. It claimed 40% depreciation on the trucks before the assessing officer. The assessing officer has allowed only 30% depreciation.

None appeared for the assessee. Learned counsel for the revenue brought to our notice that similar issue has been considered by this court in the case of Commissioner of Income Tax Vs. Sardar Stones, wherein the view has been taken that trucks are entitled for depreciation at the rate of 30% only.

Following our view taken by this court in the case of Sardar Stones (supra), we answer the question in negative, i.e., in favour of the revenue and against the assessee.

The reference, so made, is disposed of accordingly.