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Issues involved: Interpretation of ownership for claiming depreciation on a building.
Summary: The High Court of Kerala addressed a case where the Income-tax Appellate Tribunal referred a question regarding the disallowance of depreciation claim on a building by an applicant-assessee. The Tribunal disallowed the claim on the basis that the company was not the owner of the building. The assessee argued that it had constructed the building and should be considered the owner, but the Tribunal found that without a registered deed conveying ownership, the assessee could not be deemed the owner and thus not entitled to depreciation. Citing a previous case, the court affirmed that depreciation can only be claimed by the owner who uses the assets, and since the assessee was not the owner as per the Tribunal's finding, the disallowance of the depreciation claim was justified. In conclusion, the court answered the question in the affirmative, ruling against the assessee and in favor of the Revenue. The case was disposed of accordingly, with a copy of the judgment to be forwarded to the Income-tax Appellate Tribunal.
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