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Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of Assessee leasing out commercial vehicles on hire purchase basis was entitled to higher rate of depreciation [A.Y. 2000-01]. The assessee was a company carrying on the business of leasing out commercial vehicles on hire purchase basis. The assessee claimed depreciation at 40 per cent on all the leased out commercial vehicles, which was disallowed by the Assessing Officer, who restricted the claim of depreciation at 25 per cent on the ground that the assessee-company itself had not utilized the commercial vehicles on hire. The Tribunal allowed the assessee's claim. Held that in view of the decision of the Madras High Court in CIT v. Madan & Co.[2002] 254 ITR 445 no substantial question of law arose from the Tribunal's order allowing the assessee's claim. CASE REVIEW CIT v. Madan and Co.[2002] 254 ITR 445 (Mad.)followed & relied upon. JUDGMENT P.D. Dinakaran, J.-The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I. T. A. No. 1538/Mds/2004 dated February 17, 2006. The facts leading to the filing of the above appeal are as follows : The issue relates to the assessment year 2000-01. The assessee is a company carrying on the business of leasing out commercial vehicles on hire purchase basis. The assessee claimed depreciation at 40 per cent, on all the leased out commercial vehicles, which was disallowed by the Assessing Officer, who restricted the claim of depreciation at 25 per cent, on the ground that the assessee-company itself had not utilised the commercial vehicles on hire. Aggrieved by the said order of the assessment, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), who by order dated March 23, 2004, allowed the appeal holding the issue in favour of the assessee, which, on appeal at the instance of…

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