Commissioner of Income Tax vs Bansiwals Iron and Steel Rolling Mills

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

"Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in allowing depreciation on trucks at the rate of 40 per cent instead of 30 per cent allowed by the Income Tax Officer?"

None appeared for the assessee. Heard the learned counsel for the revenue.

At the outset, the learned counsel for the department submits that this issue is covered by the decision of this court in the case of Commissioner of Income Tax Vs. Sardar Stones, wherein it was held that the assessee is entitled to depreciation at 40 per cent and not 30 per cent as is allowable in case of motor lorries.

Following the 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 stands disposed of accordingly.