Truck-mounted crane treated as a motor lorry for depreciation, allowing the higher rate under the income-tax rules.

For depreciation under section 32 and Appendix I to rule 5, the expression "motor lorries" was construed in common-parlance and functional terms to include a truck-mounted crane used as a single special-purpose mobile unit. The mounted crane was treated as an integral part of the motor truck, not as a separate stationary machine, and the vehicle's character was considered sufficiently apparent for judicial notice. On that basis, the truck-mounted crane qualified for depreciation at 40 per cent, rather than the general machinery rate.

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Issues: Whether a mobile crane mounted on a motor truck, registered as a heavy motor vehicle and used in a business of running on hire, falls within the expression "motor lorries" in the depreciation table so as to qualify for depreciation at 40 per cent.

Analysis: The depreciation under section 32(1)(ii) of the Income-tax Act, 1961 is to be allowed at the rates specified in Appendix I to rule 5 of the Income-tax Rules, 1962. The expression "motor lorries" in the relevant entry was construed as meaning motor trucks, and the Court treated a truck-mounted crane as a single mobile unit designed for special services. The reasoning emphasised the functional and common-parlance meaning of the vehicle, the fact that a fork lift truck and a crane truck are types of special-purpose motor trucks, and that the mounted crane remained an integral part of the truck rather than a separate stationary machine. The Court also held that the nature of the truck crane was a matter of which judicial notice could be taken, and that no fresh factual enquiry was needed to recognise the vehicle's character.

Conclusion: The crane mounted on the motor truck was held to fall within "motor lorries" and the assessee was held entitled to depreciation at 40 per cent.; the answer to the referred question was in the negative, against the Revenue and in favour of the assessee.

Final Conclusion: The reference was answered in favour of the assessee, with the higher depreciation rate allowed on the truck-mounted mobile crane.

Ratio Decidendi: A truck-mounted mobile crane registered as a heavy motor vehicle and used for hire is a special-purpose motor truck falling within the expression "motor lorries" for depreciation purposes, and the absence of a separate entry for cranes does not justify treatment under the general machinery rate.

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