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Issues:
1. Whether the deed of partnership, where partners contributed immovable property towards the assets of the partnership, required registration. 2. Whether the assessee was entitled to depreciation under section 10(2)(vi) of the Indian Income-tax Act, 1922, in respect of the contributed immovable property. Analysis: 1. The High Court addressed the issue of whether the transfer of immovable property by partners to a partnership required registration. The court referred to Section 14 of the Indian Partnership Act, which states that property brought into the firm by partners becomes part of the partnership property. The court held that even if the property contributed is immovable, no registration is necessary for the transfer to the partnership. The court relied on previous judgments and concluded that the deed did not require registration, affirming the right of the partnership to claim depreciation on the property. 2. The second issue involved whether the assessee was entitled to claim depreciation on the contributed immovable property. The court referenced a previous case involving the same parties and assessment years, where it was determined that the assessee was entitled to depreciation. The court noted that the revenue did not appeal this decision to the Supreme Court, making it binding. Therefore, the court upheld the previous decision and ruled in favor of the assessee's entitlement to depreciation under section 10(2)(vi) of the Income-tax Act. Overall, the court answered both questions in the affirmative, affirming the right of the partnership to claim depreciation on the immovable property contributed by the partners without the need for registration. The parties were left to bear their own costs in the case.
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