Depreciation allowance on an imported used motor car sustained where pre-shipment use justified the enhanced relief.

Depreciation allowance on an imported used motor car was enhanced after the appellate authority considered the vehicle's condition and the period of use before shipment. That factual basis supported increasing the allowance from 46% to 48%, and the further relief was found to call for no modification. The appeal therefore did not justify interference with the appellate order, and the enhanced depreciation was sustained.

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Issues: Whether the further increase in depreciation allowance granted in respect of the imported used motor car required interference in appeal.

Analysis: The assessment had been made after considering the condition of the vehicle and allowing depreciation and trade discount. The appellate authority enhanced the depreciation allowance from 46% to 48% on the ground that the car had been in use for nearly a quarter of a year before shipment. The reasoning for the additional relief was found to be well-founded and not calling for modification.

Conclusion: The enhancement of depreciation allowance was upheld and no interference with the appellate order was warranted.

Final Conclusion: The valuation dispute was resolved against the Revenue and the respondent's relief on depreciation was sustained.

Ratio Decidendi: Where the appellate authority's enhancement of depreciation allowance is supported by the factual condition and pre-shipment use of the imported vehicle, such finding does not warrant interference in appeal.

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