2001 (9) TMI 50

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....e Revenue contends that when the owner of the lorry leases it to another for an agreed rental for a specific period, the owner cannot claim the higher rate of depreciation provided in Appendix I, entry 111(2)(ii), under the sub-heading "Machinery and plant", the appendix being the Appendix to the Income-tax Rules. That entry reads as under: "Motor buses, motor lorries and motor taxis used in a ....

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....ter rate for such vehicles that the law provides for the higher rate of depreciation. The fact that the assessee here chose to lease out the vehicle does not on that score disentitle the assessee to claim the benefit of the higher depreciation. The lease of the vehicle enables the lessee to have possession of the vehicle, and have the right to use the vehicle as the lessee wishes, subject to th....

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....only meant to denote that the use of the vehicle is not by the owner himself for his own purposes, but it is given to another for use for a limited period of that other for a consideration. For the purpose of this entry there is no qualitative difference between lease of the vehicle for a specified period for consideration and letting the vehicle on hire for short duration on payment of hire charg....