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TMI Blog2012 (7) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is not the owner. Merely because the vehicles were used by the lessees in their business, the assessee cannot be denied the depreciation @ 40% - If the authorities were of the view that the assessee has failed to prove his ownership over those vehicles, then, if depreciation is to be disallowed then they also should not have taken that lease rental agreement for the purpose of making the assessment - subsequent years, the assessee had been granted the benefit of depreciation. Therefore, the order to be passed by the authorities should be consistent. The approach of the authorities in so far as current assessment year is concerned is contrary to law and requires to be set aside - appeal is allowed - IT APPEAL NO.2557 OF 2005 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was asked to substantiate his claim that it actually owns the vehicles. The assessee contended that all the vehicles were owned by them and that they were leased out. The sale of the vehicle in the subsequent year for depreciation was under consideration. The assessee was directed to file a detailed note along with the lease agreement, payment particulars and such other evidence stating their case. The assessee furnished all the particulars sought for including the account ledger. Having gone through the same, the Assessing Authority held that the assessee has been financing for the purchase of vehicles, after receiving margin money from the customer. It is also clear that the interest was charged at 13% to 16% depending on the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that ground, the Appellate Authority confirmed the finding recorded by the Assessing Officer. Aggrieved by the same, the assessee preferred an appeal to the Tribunal. The Tribunal held that the claim of depreciation has rightly been rejected by the authorities. The summons and letters issued to the addresses as given by the assessee have not been responded. The assessee did not bother to give the changed addresses to the Assessing Officer nor supply the basic materials which could have established that the assessee was the owner of these assets. Therefore, it upheld the disallowance of the depreciation and dismissed the appeal. Aggrieved by these orders, the assessee is before this Court. 2. We have heard the learned Counsels for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is only in the business of leasing, which necessarily involves financing for purchasing these vehicles. The vehicles were used by the lessees only. He has produced the purchase bills showing the consideration paid by him for acquiring those vehicles. He has also produced the lease agreements. Once the lessee is put in possession of the vehicle, which he has purchased in law, the lessee also becomes the owner under the provisions of the Motor Vehicles Act. The word 'owner' has been defined in the Motor Vehicles Act as under :- "Section 2(30) : Owner means a person in whose name a motor vehicle has been registered and where such person is a minor, the guardian of such minor and in relation to a motor vehicle which is the subject matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee claims the ownership of the vehicles. Therefore, the authorities were not justified in drawing an adverse inference and in holding that the assessee is not the owner. In respect of other 3 cases, merely because the vehicles were used by the lessees in their business, the assessee cannot be denied the depreciation @ 40%. In fact, it is not in dispute that in respect of all these vehicles, the assessee has acknowledged the receipt of lease rent and has shown the same in his profit and loss account. It is thereafter he is claiming depreciation. If the authorities were of the view that the assessee has failed to prove his ownership over those vehicles, then, if depreciation is to be disallowed then they also should not have taken tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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