Higher depreciation for vehicles leased to be run on hire upheld despite an unraised challenge on actual user.

Vehicles leased out to a third party for being run on hire were treated as eligible for depreciation at the higher rate, following the earlier ruling on the same point. The Revenue's objection that the actual use of the vehicles by the lessee on hire had not been examined was not entertained because the point had not been raised before the Tribunal and was not the Assessing Officer's case. On that basis, the assessee's entitlement to higher depreciation was affirmed.

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Issues: Whether an assessee who has leased out vehicles to a third party for running them on hire is entitled to depreciation at a higher rate.

Analysis: The issue was governed by the earlier decision holding that vehicles leased out for being run on hire qualify for depreciation at the higher rate. The Revenue's attempt to argue that the actual use of the vehicles by the lessee on hire had not been examined was not entertained because no such plea had been raised before the Tribunal, and it was not even the Assessing Officer's case that the vehicles were not used on hire.

Conclusion: The assessee was entitled to depreciation at the higher rate and the appeal was not entertained.

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