Higher depreciation for hire vehicles upheld where factual finding of business use on hire remained unchallenged.

Where the factual finding that vehicles were used in the business of letting them on hire was supported by material in the assessee's own case, including hire agreements and vehicle details, and was not displaced by contrary evidence, the assessee was entitled to the higher depreciation rate applicable to such vehicles. The Tribunal's view allowing depreciation at 40% instead of 25% was therefore upheld, and the Revenue's challenge failed.

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Issues: Whether the assessee was entitled to depreciation at 40% instead of 25% on vehicles given on hire.

Analysis: The Tribunal's finding that the assessee was engaged in the business of giving vehicles on hire was supported by material already accepted in the assessee's own case, including details of vehicles on hire and hire agreements. No evidence was brought to displace that factual finding. In those circumstances, the assessee was entitled to the higher rate of depreciation applicable to vehicles used in the business of letting them on hire.

Conclusion: The higher depreciation rate was correctly allowed to the assessee, and the Revenue's challenge failed.

Ratio Decidendi: Where the factual finding that vehicles are used in the business of being given on hire is not shown to be incorrect, the assessee is entitled to the higher rate of depreciation applicable to such vehicles.

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