https://www.taxtmi.com/caselaws?id=11408 The dominant issue was whether a financing and leasing assessee qualified for the higher depreciation rate under Appendix I applicable to "motor buses, motor lorries and motor taxis used in a business of running them on hire." The HC held that "hire" is a bailment conferring only a temporary licence to use, typically with an option to purchase, whereas "lease" transfers possession and differs fundamentally from hire. Since the assessee's income arose from lease rentals and financing activities, merely letting out vehicles under lease did not amount to using them in the business of running them on hire. Consequently, higher depreciation was denied and the Tribunal's view was upheld. en-us Wed, 30 Apr 2003 00:00:00 +0530 Mon, 29 Dec 2025 12:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11408 The dominant issue was whether a financing and leasing assessee qualified for the higher depreciation rate under Appendix I applicable to "motor buses, motor lorries and motor taxis used in a business of running them on hire." The HC held that "hire" is a bailment conferring only a temporary licence to use, typically with an option to purchase, whereas "lease" transfers possession and differs fundamentally from hire. Since the assessee's income arose from lease rentals and financing activities, merely letting out vehicles under lease did not amount to using them in the business of running them on hire. Consequently, higher depreciation was denied and the Tribunal's view was upheld. Case-Laws Income Tax Wed, 30 Apr 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11408