1986 (1) TMI 188

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....be said to be carrying on business of letting the buses on hire, according to the ITO, only 30 per cent depreciation could be granted. The assessee appealed and submitted before the Commissioner (Appeals) that depreciation should have been allowed at 40 per cent. The Commissioner (Appeals) was of the view that when a bus is registered and operated as a public carrier, as distinguished from private carrier then it has to be considered that the bus was let out on hire. He, therefore, allowed the appeal. 2. The revenue is aggrieved. The submission of the learned departmental representative is that 40 per cent is admissible only if the whole bus was hired out. The present is not such a case. If people took single tickets and travelled in the....

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....certain the nature of the receipts in the case of the assessee. We find that they are by way of collection by plying the buses on various routes. The Depreciation Schedule also shows that depreciation at 40 per cent was claimed on four buses, viz., TNC-7149, TNB-7434, TNG-7070 and MDS-8928. It is, therefore, clear that the assessee was receiving income from plying buses on specified routes---city as well as moffussil. The question is whether the motor buses were used in the business of running them on hire. Section 2(25) of the Motor Vehicles Act defines 'public service vehicle' as below: " 'public service vehicle' means any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward, and includes a motor c....