1986 (3) TMI 18

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....at dumpers were motor lorries or other road transport vehicles entitled to such depreciation under Part III-D(9) of the depreciation schedule attached to the Income-tax Rules. However, the assessee's claim for development rebate on those dumpers was disallowed by the Income-tax Officer. The view taken by the Income-tax Officer was confirmed by the Appellate Assistant Commissioner. The assessee carried the matter in appeal before the Income-tax Appellate Tribunal (" Tribunal " for short) and claimed that dumpers were machinery and that the assessee was entitled to development rebate on the dumpers. The Tribunal accepted the assessee's claim and allowed the assessee's claim for development rebate. On the basis of the Tribunal's decision, the ....

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....The assessee being dissatisfied with the decision of the Tribunal, the following question has been referred to us for our opinion by the Tribunal for the assessment year 1980-81 in Income-tax Reference No. 28 of 1985: " Whether the Tribunal was right in law in holding that the assessee was not entitled to depreciation at 30% on dumpers ? " So far as the assessment for the assessment year 1974-75 is concerned, the stand of the Revenue was that since the dumpers were road transport vehicles, the assessee was not entitled to development rebate. The Tribunal, however, held that since the dumpers were machinery or tools used for the purpose of construction work of the assessee, the assessee could not be denied development rebate on the gro....

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....of development rebate and they were not so for the purpose of depreciation. In fact, the stand of the Revenue all along has been that dumpers were road transport vehicles and, therefore, the assessee was not entitled to development rebate thereon. It was only when the Tribunal took the view that dumpers were machinery or tools used for the purpose of business of the assessee and that, for that reason, the assessee cannot be denied development rebate on the ground that they were road transport vehicles that the Revenue changed its stand and the assessment orders for the assessment years 1974-75 and 1975-76 came to be rectified and, as stated above, for the assessment year 1980-81, the assessee was denied depreciation on the dumpers as road t....