Higher depreciation on crawler cranes and trailers allowed where equipment is functionally akin to motor vehicles and road-capable.

Crawler cranes and trailers used in the assessee's business were treated as eligible for higher depreciation at 30% as motor vehicles used on hire, rather than as plant and machinery at 15%. The Tribunal relied on its earlier coordinate bench decisions in the assessee's own case, and held that registration under the Motor Vehicles Act was not a for depreciation under the income-tax schedule where the equipment was capable of road use and functionally akin to listed motor vehicles. On that basis, the Revenue's objection was rejected and the assessee's depreciation claim was upheld.

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Issues: Whether crawler cranes and trailers used in the assessee's business were eligible for higher depreciation at 30% as motor vehicles used on hire, or were to be treated as plant and machinery eligible only for depreciation at 15%.

Analysis: The Tribunal followed the coordinate bench decisions in the assessee's own case for earlier years and examined the nature and use of crawler cranes. It noted that such equipment is capable of being adapted for use on roads, that registration under the Motor Vehicles Act is not a precondition for claiming depreciation under the income-tax depreciation schedule, and that functional similarity with listed motor vehicles is relevant where the precise equipment is not expressly named. The Tribunal also relied on prior judicial and administrative support for treating similar equipment as motor vehicles for depreciation purposes.

Conclusion: The crawler cranes and trailers were held to qualify for higher depreciation at 30%, and the Revenue's objection to the depreciation rate was rejected.

Final Conclusion: The assessee's depreciation claim was upheld and the Revenue's appeal was dismissed.

Ratio Decidendi: For depreciation purposes, equipment capable of being adapted for road use and functionally akin to listed motor vehicles may qualify for higher depreciation even without registration under the Motor Vehicles Act.

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