2003 (4) TMI 595

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....s seem to have been admitted is as follows : "Whether, on the facts and circumstances of the case, the Tribunal had valid materials to hold that the assessee is entitled to higher rate of depreciation of 40 per cent when admittedly no hire charges were accounted for in the relevant assessment years ?" 4. The relevant facts are as follows : The assessee had business of selling cattle feed and poultry products. He also has the business of letting the vehicles on hire. The assessing authority refused to grant 40 per cent depreciation charges in terms of Entry III(2)(ii) of Appendix I to the IT Rules on the ground that the lorries owned by the assessee were not used for hire purposes. The assessing authority came to the conclusio....

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....at as it may, the appellate authority, therefore, allowed the appeal totally relying on his earlier order for the earlier assessment year 1984-85. In para 4 the appellate authority says thus: "In the light of the appellate order for the assessment year 1984-85, I do not find any warrant for taking a different view in so far as the assessment years 1985-86 and 1986-87 are concerned." 7. The Revenue went up before the Tribunal. However, the Tribunal took the view that the assesee's claim had been upheld in various subsequent assessment years in support of which the assessee had filed copies of the appellate orders for the assessment year 1994-95 and rectification order under section 154 for the assessment year 1996-97 in addition....

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....e and, therefore, he had enough evidence to suggest that the lorries were actually used not for the business purpose, but for hire purposes. 10. When we see the order of the Tribunal and the appellate authority the orders have been mechanically passed relying on the order of the CIT(A) for the earlier assessment years. There can be no dispute that in the account for the years 1985-86 and 1986-87, the assessee has not claimed any amounts on account of the hire charges. It is only on that basis that the assessing authority came to the conclusion that there were no hire charges earned by the assessee in respect of these 18 lorries and, therefore, the assessee could not claim the depreciation at 40 per cent. 11. Learned counsel for the assess....