9911796707
TMI Blog1994 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... nception and necessary changes have been effected in the revenue records to that effect as per G.O. Ms. No. 1402 Transport Dept. dated 10-9-1979 with the result the assessee has become the owner of the lands and buildings in question. He has also relied upon the order of the Tribunal for earlier years and the decision of the CIT (Appeals) relating to the assessment years 1983-84 and 1984-85. Accordingly, he directed the Assessing Officer to allow depreciation on 'B' class buildings in accordance with the provisions of law. 2. The revenue has taken grounds to urge that the decision of the CIT (Appeals) is contrary to law and facts of the case. He erred in allowing depreciation on building without registered document. It was also urged that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 1984-85 wherein direction to allow depreciation on the land and buildings was given by the Tribunal and the CIT (Appeals). 5. At the time of hearing the learned departmental representative reiterated the grounds taken by the revenue and relied heavily on the judgment of the Madras High Court in the case of Tamil Nadu Agro Industries Corpn. Ltd. The learned counsel for the assessee, on the other hand, relied on the later judgment of the Madras High Court in the case of CIT v.Tamil Nadu Small Industries Development Corpn.Ltd [1991] 190 ITR 655 and also the decision of the Tribunal in IT Appeal Nos. 2556 and 2557/Mds/88 relating assessment years 1983-84 and 1984-85 dated 23-4-1992. His contention was that in the case of Tamil Nadu Agro I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Tamil Nadu Small Industries Development Corpn. Ltd by Government Order Ms. No. 1899 dated 24-8-1970 three raw material depots at Guindy, Madurai and Coimbatore were transferred by the Govt. of Tamil Nadu to the control of the assessee for Rs. 59,74,000. The consideration was paid and the assessee was put in possession of the raw material depots. The Tribunal held that the provisions of Transfer of Property Act would not apply to the transfer made by the Government of Tamil Nadu in favour of the assessee in view of section 2 of the Government Grants Act, 1895 and no registered conveyance was required for effecting the transfer in favour of the assessee and the assessee being the owner of the three raw material depots was entitled to dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 895. Thus the assessee in that case was held to be eligible for depreciation even though registered sale deed was not executed for the property transferred. This decision made an the difference between the case of Tamil Nadu Small Industries Development Corpn. Ltd. and the Tamil Nadu Agro Industries Corpn. Ltd. Further in the case of Tamil Nadu Agro Industries Corpn. Ltd the Government of Tamil Nadu by G.O. Ms. No. 2345 Industries Department dated 11- 11-1970 granted permission to the Neyveli Lignite Corporation to sell " lignite House " to the assessee subject to certain conditions. Therefore, that order of the Government could not be treated as a grant under section 2 of the Government Grants Act, 1895 so as to exclude the transfer from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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