9911796707
TMI Blog1999 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... instance of the assessee, the Income-tax Appellate Tribunal has referred, the following question of law arising out of its order dated November 4, 1996, in respect of the assessment year 1991-92 under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the applicant was not entitled to claim deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The case of the assessee is that the property was purchased in the nature of a flat at Bombay from a co-operative society by acquiring the shares and the shares were transferred in favour of the assessee. It is submitted that the ownership of the property has vested by acquiring a share in the co-operative society and the registration of any sale deed was not at all necessary. According to se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f merely being holders of shares in the co-operative society are entitled to possession and enjoyment and not to ownership. Since the assessee was able to enjoy the property it can be only by way of transfer of the property as contemplated by section 2(47)(vi) of the Act and, therefore, the depreciation should have been allowed. Arguments of both learned counsel for the parties heard. The matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant was not entitled to claim depreciation on the house which was acquired through acquisition of shares in a co-operative society, where registration under the Registration Act was not required. Accordingly, the reference is answered in favour of the assessee and against the Revenue.
Sri G. Sarangan, learned counsel is permitted to file vakalath in two weeks. X X X X Extracts X X X X X X X X Extracts X X X X
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