Higher depreciation on earth moving vehicles upheld, and revision to reduce the rate was found unwarranted on undisputed facts.

Depreciation on earth moving vehicles was held allowable at 30% under the relevant entry in Appendix I to the Income-tax Rules, 1962, because the nature of the vehicles and the applicable depreciation schedule supported the higher rate on undisputed facts. The revisional order under Section 263 of the Income-tax Act, 1961, which sought to reduce depreciation to 15%, was found unwarranted since the assessing officer had correctly applied the rule and no factual controversy justified interference. The higher depreciation claim was upheld and the revisionary restriction was not sustained.

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Issues: Whether the assessee was entitled to depreciation at 30% on earth moving vehicles under the relevant entry in Appendix I to the Income-tax Rules, 1962, and whether the revisional order under Section 263 of the Income-tax Act, 1961 could lawfully restrict depreciation to 15%.

Analysis: The factual position was not in dispute. The Tribunal relied on the nature of the vehicles and the applicable entry in Appendix I, along with judicial precedents on the treatment of such vehicles for depreciation purposes. It held that the assessing officer had correctly allowed depreciation at 30% and that the Commissioner's interference under Section 263 was not justified on the facts.

Conclusion: The claim for depreciation at 30% was upheld and the revisional restriction to 15% was not sustained.

Ratio Decidendi: Where the relevant facts are undisputed and the asset falls within the higher-depreciation entry in the Rules, revisional interference to reduce depreciation is unwarranted.

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