COMMISSIONER OF INCOME TAX Vs. PEER KHAN CHAND KHAN MORAK

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated March 14, 1986, in respect of the assessment year 1983-84 under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE facts of the case as stated are that the assessee is carrying on the business of exploiting the mines and taking out stones with the help of dumpers. On these vehicles, the assessee claimed depreciation at 40 per cent. THE Income-tax Officer had held that the special rate of depreciation at 40 per cent. was not applicable inasmuch as the assessee did not use the vehicles for any public transport business. THEy were being used for its own business. THE depreciation was, therefore, restricted to 30 per cent. In appeal, the Appellate Assistant Commissioner enhanced the rate to 40 per cent. relying on the decision in the case of Manjeet Stone Co. (I.T.A. No. 148/JP/84 decided on November 19, 1984).