K.C. Agrawal, J.

1. AT the instance of the assessee, the following question has been referred to us under Sub-section (2) of Section 256 of the Income-tax Act, 1961 :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in rejecting the claim of depreciation amounting to Rs. 1,44,669 on new trucks purchased in the year under consideration and also on written down value of the old trucks, etc., when full details were filed in the shape of Nos. of trucks and date of purchase ?"

2. THIS reference is confined to the year 1969-70. The assessee is a private limited company and the gross receipt was shown at Rs. 5,46,805 against which the profit shown was Rs.34,527. In the explanation, the assessee claimed that on account of bad condition and hilly area, abnormally high expenses were incurred for the operation and repairs of vehicles. The Income-tax Officer was not satisfied with the explanation and the accounts submitted by the assessee and, as such, he made an addition of Rs. 20,000 to the contract work to bring the rate to 10%. The assessee claimed depreciation on the vehicles purchased. The Income-tax Officer disposed of this claim by observing