2003 (9) TMI 63

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....TJU J.-This is an income-tax reference under section 256(1) of the Income-tax Act, 1961, in which the following questions have been referred to us for our opinion: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the tractor was not a road transport vehicle? 2. Whether the Tribunal was legally correct in directing the Inspecting As....

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....e Commissioner of Income-tax (Appeals). On further appeal, the Tribunal has decided in favour of the assessee and held that the investment allowance should be allowed to it. Section 2(30) of the Motor Vehicles Act, 1939, defined "tractor" as follows: "Tractor means a motor vehicle which is not itself constructed to carry any load (other than equipment) used for the purpose of propulsion but ....

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....tractors in question are road transport vehicles? The expression "road transport vehicles" has not been defined in the Income-tax Act and hence we have to give it the meaning in common parlance. In our opinion, road transport vehicles would mean vehicles which are used for transportation of goods or passengers on roads. A tractor is not basically used for transportation of goods or passengers o....