depreciation in respect of motor cars.
• But there is an anomaly in the rules. Under clause (ii) of sub-item (2) of the rules, motor buses, motor lorries and motor taxies used in a business of running them on hire are entitled to depreciation at a rate of only 40 per cent. Though this rate is applicable even to old vehicles which are used for running on hire, it would seem strange that specified new motor cars which are not used for running on hire would be entitled to the higher rate of 50 per cent. Perhaps the intention of the rule makers is to promote the sale of new vehicles and, hence, the accelerated depreciation to all new vehicles acquired and put to use between April 1, 2001 and March 31, 2002.
• The rule making authority should step in and clarify the issue in case they are of the opinion that not all new vehicles purchsed between April 1, 2001 and March 31, 2002 will be entitled to the benefit of the accelerated rate of 50 per cent prescribed by clause (iid) of sub-item (2) of item III of Appendix I to the Rules.