https://www.taxtmi.com/caselaws?id=9949 Motor vehicles deployed in the business of running them on hire qualify for the higher depreciation rate under Item III of Appendix I to the Income-tax Rules, 1962. The decisive test is the nature of the business use of the vehicles, not the identity of the hirer. Where buses, lorries or taxis are used on hire, depreciation is admissible at 40 per cent rather than 20 per cent, even if the vehicles ferry employees of a sister concern. The legal position therefore turns on use in hire business and not on whether the user is a related party or an outsider. en-us Mon, 20 Feb 2006 00:00:00 +0530 Tue, 20 Sep 2011 18:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9949 Motor vehicles deployed in the business of running them on hire qualify for the higher depreciation rate under Item III of Appendix I to the Income-tax Rules, 1962. The decisive test is the nature of the business use of the vehicles, not the identity of the hirer. Where buses, lorries or taxis are used on hire, depreciation is admissible at 40 per cent rather than 20 per cent, even if the vehicles ferry employees of a sister concern. The legal position therefore turns on use in hire business and not on whether the user is a related party or an outsider. Case-Laws Income Tax Mon, 20 Feb 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9949