2002 (5) TMI 27

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..... Revenue under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), by the Income-tax Appellate tribunal, Delhi Bench "B", Delhi (hereinafter referred to as "the Tribunal"), for the opinion of this court on the following question: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that depreciation on a vehicle which is not registered in the name of the assessee was an allowable deduction in the hands of the assessee?" The basic facts of the matter as have been stated by the Tribunal are as follows: "2. The assessee is a company engaged in the manufacture of sugar and having two units, one at Basti and the other at Waltergang a .....

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..... year 1974-75. The Tribunal upheld the order of the Commissioner of Income-tax (Appeals) in accordance with the earlier order of the Tribunal. 7. On similar facts, the Tribunal rejected the reference application of the Revenue for the assessment year 1974-75. For the reasons fully discussed in the order dated July 7, 1983, with which we agree we reject the present application of the Revenue also. 8. During the course of the assessment proceedings, the Income-tax Officer objected to the consumption of the lubricants in the Basti and Waltergang units. According to the Income-tax Officer, the value of lubricating oil consumed by the assessee at the Basti unit Rs.137 per qtl. was excessive compared to Rs.69 per hundred litre last year. Havi .....

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..... allowed the claim of the assessee in the following terms: "6. Identical cases came up before the Delhi Income-tax Appellate Tribunal in the case of Indure Malleable and Alloy Casting Pvt. Ltd. in I.T.A. No. 1496 (Delhi) of 1978-79. In that case the assessee claimed depreciation on motorcycle which was not registered in the name of the assessee. The Tribunal vide its order dated July 7, 1980, granted depreciation in the light of the order of the Bombay Bench of the Tribunal in the case of SBC Pvt. Ltd. in I.T.A. No. 6 (Bom) of 1974-75. Since vehicle in question is a movable asset, the Tribunal held that registration as required in the case of transfer of immovable property is not a condition precedent for legal ownership. Respectfully fol .....

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