Reference on depreciation of leased trucks allowed where the Tribunal's order gave rise to a question of law.

The Delhi HC held that the proposed question on depreciation of leased trucks did arise from the Tribunal's appellate order as a question of law under section 256 of the Income-tax Act, 1961. On that basis, the Tribunal was not justified in rejecting the Revenue's application for reference. The Court directed the Tribunal to draw up a statement of case and refer the legal question to the High Court, thereby accepting the Revenue's request for reference.

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Issues: Whether the Tribunal was justified in rejecting the Revenue's application for reference under section 256(1) of the Income-tax Act, 1961, and whether the proposed question on depreciation of leased trucks gave rise to a question of law requiring reference under section 256(2).

Analysis: The Court, after examining the assessment order and the orders of the appellate authorities and the Tribunal, found that the proposed question did arise from the Tribunal's appellate order as a question of law. The Tribunal was, therefore, not justified in rejecting the application for reference.

Conclusion: The issue was answered in favour of the Revenue and the Tribunal was directed to draw up a statement of case and refer the question of law to the High Court.

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