240. Motor vans – Rate of depreciation prescribed in Part I of Appendix I to Income-tax Rules
1. The Board had an occasion to consider the rate at which depreciation should be allowed in respect of “Motor vans” as no specific rate has been provided for them under Appendix I to the Income-tax Rules, 1962.
2. The Board consider that as “Motor vans” are more akin to “Motor lorries” and “Motor buses” than to “Motor cars”, depreciation on “Motor vans” may be allowed at the rate applicable to “Motor lorries” and “Motor buses” which is 30 per cent as per item No. III (ii)-D(9) of Appendix I.
Circular : No. 315 [F. No. 202/89/79-IT(A-II)], dated 24-9-1981.
JUDICIAL ANALYSIS
RELIED ON IN – The above circular was relied on in D.S. Construction (P.) Ltd. v. ITO [1987] 29 TTJ (Delhi-Trib.) 22, with the following observations :
“4. Having considered the facts of the case we are of the view that as far as the case of motor vans is considered it would not be fair not to act on the distinction between the motor vans and the motor cars made by CBDT in the above noted circular. . . .” (p. 23)
See also ITO v. Kohinoor Flour Mills Ltd. [1991] 94 CTR (Ahd. – Trib.) 186.
