2006 (2) TMI 133

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....N. KUMAR J.- Sri S. Parthasarathi, learned counsel takes notice for the respondent. Heard learned counsel for the parties. As the matter could be disposed of on a short point, by consent of the parties, this appeal is taken up for final hearing and disposed of by this judgment. In this appeal the Revenue has challenged the order of the Income-tax Appellate Tribunal, Bangalore Bench, made ....

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....sioner. The Commissioner allowed depreciation at 40 per cent. on the ground that once the vehicle is used for the business of hire, the assessee is entitled to 40 per cent. depreciation, which order has been affirmed by the Tribunal. Challenging these orders, the Revenue is before this court. We have heard learned counsel appearing for the parties. Item III of Appendix I to the Income-tax Ru....

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....tor buses, lorries and taxis used in a business of running them on hire. The stress is "on running them on hire". Here the use may be for its business, but not "business of hiring vehicles". In other words, if the assessee uses the vehicles for its "own use" or for its business other than the "business of running the vehicles on hire" then 20 per cent. is the depreciation allowable, whereas if ....