Law:

Section:

Section 32, read with section 256, of the Income-tax Act, 1961 - Depreciation - Rate/Allowance of - Assessment year 1982-83 - Assessee-firm was carrying on business of manufacturing of bars and flats from raw material of semi-finished ingots and iron scrap - It purchased a truck for its own business purpose - Depreciation was claimed by assessee on truck trailer at rate of 40 per cent but Assessing Officer allowed depreciation at rate of 30 per cent - On material produced on record, Tribunal recorded finding that assessee had income from plying of truck and there was income from hiring alongwith other business done by the assessee and therefore depreciation to extent of 40 per cent was allowable - Whether finding recorded by Tribunal was finding of fact and it was not perverse finding - Held, yes - Whether, therefore, no question of law arose from Tribunal's order - Held, yes FACTS The assessee-firm carrying on its business of manufacturing of bars and flats from the raw material of semi-finished ingots and iron scrap, had purchased a truck for its own business purpose. In the return for the assessment year 1982-83, the assessee claimed depreciation at the rate of 40 per cent on the truck trailer. The Assessing Officer allowed the depreciation on the truck at the rate of 30 per cent. The Tribunal held that the assessee had income from plying of the truck and there was income from hiring along with the other business done by the assessee and therefore, the depreciation to the extent of 40 per cent was allowable. The application under section 256(1) was rejected. On application under section 256(2): HELD It was not the finding of the Tribunal that the truck was used only for the purpose of carrying the raw material and the manufactured goods of the assessee. On the other hand, on the basis of the material which had come on record the Tribunal had recorded a finding of fact that the assessee had income from plying of the truck. It was not a pure question of law but it was a mixed question of law and fact. On the material produced on record, the finding of fact had been recorded by the Tribunal that the assessee had receipts from hiring of the truck and that, was…

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