Commercial vehicle depreciation extends to tippers and road-construction equipment used as motor vehicles, not plant and machinery.

Tippers, vibrators and vibrator soil compactors used in road construction were treated as commercial vehicles for depreciation purposes under the Income-tax Act. The depreciation provision, read with its statutory explanation, did not expressly exclude these assets, and their registration as motor vehicles together with their functional use supported classification as commercial vehicles rather than plant and machinery. Prior decisions on similar equipment reinforced that treatment. On that basis, depreciation at 40% was available, and the contrary revenue objection was rejected.

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Issues: Whether tippers, vibrators and vibrator soil compactors were commercial vehicles eligible for depreciation at 40% under the Income-tax Act, or were to be treated as plant and machinery attracting a lower rate of depreciation.

Analysis: The depreciation provision for commercial vehicles was construed with reference to the statutory explanation, which excludes certain vehicles but does not expressly exclude tippers, vibrators or vibrator soil compactors. The assets were registered as motor vehicles and were used in road construction work, supporting their character as commercial vehicles rather than stationary plant and machinery. The Tribunal's view was consistent with the functional use of the equipment and with the treatment accorded to similar vehicles in prior decisions. The objection that these items should be classified as plant and machinery was therefore not accepted.

Conclusion: The assessee was entitled to depreciation at 40% on tippers, vibrators and vibrator soil compactors; the revenue's challenge failed.

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