Higher depreciation for transport vehicles used on hire was allowed under the income-tax depreciation schedule.

Motor lorries and tankers used in a transport business were treated as vehicles used in a business of running them on hire, so the assessee qualified for higher depreciation under the relevant depreciation entry in Appendix I to the Income-tax Rules, 1962. The Court followed its earlier decision involving the same assessee and applied that position to the present claim. The Revenue's contrary view was rejected, and the higher depreciation rate of 30% was held allowable.

---

---

Issues: Whether the assessee was entitled to higher depreciation at 30% on motor lorries and tankers used in its transport business under Clause III(3)(ii) of Appendix I to the Income-tax Rules, 1962.

Analysis: The claim for depreciation turned on whether the vehicles were motor lorries used in a business of running them on hire. The Court noted that the entitlement had already been considered in an earlier appeal involving the same assessee and that the present controversy stood covered by that decision. On that basis, the statutory depreciation entry was applied in favour of the assessee.

Conclusion: The assessee was entitled to higher depreciation at 30%, and the Revenue's contrary stand was rejected.

Final Conclusion: The substantial questions of law were answered in favour of the assessee, and the appeal succeeded.

Ratio Decidendi: Where motor lorries are used in a business of running them on hire, the assessee is entitled to the higher depreciation prescribed for that category under the applicable depreciation schedule.

---