Cit vs Indocount Finance Ltd.
2003 Latest Caselaw 694 Del

ORDER

This appeal by the revenue under section 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.

2. 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%.

2. 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%.

3. A similar issue has already been decided by a Bench of this court of which one (D.K. Jain, J.) was a member, in CIT v. Bansal Credits Ltd. (2003) 259 ITR 69 (Del.). 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.

3. A similar issue has already been decided by a Bench of this court of which one (D.K. Jain, J.) was a member, in CIT v. Bansal Credits Ltd. (2003) 259 ITR 69 (Del.). 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.

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

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