| Case ID |
0958f738-84a6-46b0-a469-be850ae22d09 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Rajasthan High Court held that the question of law regarding the entitlement of depreciation on trucks used by Sardar Stones for the transportation of stones was significant. The Tribunal's earlier decision allowed depreciation at a rate of 40 percent, but the Assessing Officer had allowed it at 30 percent. The court noted that the Tribunal's rejection of the application to refer this question was erroneous since it was based on a previous case, CIT v. Manjeet Stone Co., which had ruled in favor of the revenue. The High Court directed the Tribunal to state the case and refer the question of law for its opinion, emphasizing the importance of consistent legal interpretation in taxation matters. |
| Summary |
This case illustrates the principles of depreciation allowances under the Income-tax Act, 1961, particularly focusing on the rates applicable to commercial vehicles. The Rajasthan High Court analyzed the conflicting decisions regarding the depreciation rates for Sardar Stones' trucks, which were predominantly used for business purposes. The court highlighted the importance of adhering to precedents set by earlier rulings, such as CIT v. Manjeet Stone Co., which influenced the Tribunal's decision. Furthermore, the court's ruling reinforces the necessity for clarity and consistency in tax law interpretations, ensuring that similar cases are treated equitably. This case is pivotal for businesses engaged in transportation and logistics, as it clarifies the legal framework surrounding depreciation claims, potentially affecting financial reporting and tax obligations. |
| Court |
Rajasthan High Court
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| Entities Involved |
Commissioner of Income Tax,
Sardar Stones
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| Judges |
DR. AR. LAKSHAMANAN, C.J.,
RAJESH BALIA, J.
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| Lawyers |
J.K. Singhi
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Sardar Stones
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| Citations |
2002 SLD 2781,
(2002) 257 ITR 788
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| Other Citations |
CIT v. Manjeet Stone Co. [1991] 190 ITR 183/ 55 Taxman 365 (Raj.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
32,
256
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