Law:

Section:

2008] 305 ITR 132 [2008] 171 TAXMAN 474 (SC) SUPREME COURT OF INDIA Commissioner of Income-tax* v. Gupta Global Exim (P.) Ltd. S.H. KAPADIA AND B. SUDERSHAN REDDY, JJ. CIVIL APPEAL NO. 3342 OF 2008 MAY 6, 2008 Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Assessment year 1998-99 - Assessee-company was engaged in business of importing timber logs and selling them in India - During relevant assessment year, it purchased trailers and loaders and put them to use on hire - Assessing Officer denied higher rate of depreciation at 40 per cent on trailers and loaders on ground that assessee was not in business of transportation and it was only occasionally that trucks owned by it were given out on hire to outside parties - Commissioner (Appeals) reversed finding of Assessing Officer and allowed higher rate of depreciation on trailers holding that transport income by way of running subject vehicles on hire was an integral part of assessee's business and same was included in 'business income' - Whether what was relevant for consideration under sub-item 2(ii) of Item III of Appendix I to Income-tax Rules, 1962 for allowance of higher depreciation was whether assessee was in business of hiring out its trucks in addition to its business of trading in timber; mere inclusion of transportation income in total business income was not a determinative factor for deciding whether trucks were used by assessee during relevant year in a business of running them on hire - Held, yes - Whether since none of authorities below had examined matter by applying above test, impugned order was to be set aside - Held, yes [Matter remanded] FACTS The assessee-company was engaged in the business of importing timber logs and selling them in India. During the relevant assessment year, it purchased trailers and loaders and put them to use on hire. The Assessing Officer took the view that since the assessee was in timber business and it was only occasionally that the trucks owned by it were given out on hire to outside parties, the assessee was not entitled to claim higher rate of depreciation at 40 per cent on trucks. The Commissioner (Appeals) reversed the finding of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492