1998 (6) TMI 14

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....AMANIAN J.---At the instance of the Revenue, the Tribunal has stated a case and referred the following question of law under section 256(1) of the Income-tax Act, 1961, for our consideration : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the rigs and compressors. mounted on a lorry used for drilling borewells is entitled for speci....

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....eciation at 10 per cent. by the Income-tax Officer was not correct in law. The order of the Commissioner (Appeals) also disclosed the fact that the assessee had produced some materials to prove its claim before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the claim of the assessee and held that the assessee was entitled to depreciation on compressors a....

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....sor mounted on a lorry and used for drilling bore-wells are not "motor lorry" within the meaning of the said term used in entry No. III(ii)D(9) of Part I of Appendix I to the Income-tax Rules, 1962. Learned counsel for the assessee submitted that the case of the assessee was that the rigs and compressors were earth moving machinery employed in heavy construction works such as dams, tunnels, etc., ....

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....I to the Income-tax Rules, 1962. The Tribunal has proceeded on the assumption that the assessee has claimed depreciation at 30 per cent. on the basis that they were part of the lorry and held the assessee was entitled to depreciation at the rate of 30 per cent. Since the case of the assessee was that the rigs and compressors should be regarded as machinery employed in heavy construction works, suc....