1996 (8) TMI 43

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..... tion under section 32 of the Income-tax Act, on a flat which was not transferred in its name ?" The question arises out of the order of the Tribunal in I. T. A. No. 701/Hyd./14-85, dated February 3, 1987. The respondent-assessee purchased flats but the conveyance was not executed in its favour. It claimed depreciation on the said flats under section 32 of the Act. The claim was disallowed by the Income-tax Officer. On appeal the Commissioner of Income-tax (Appeals) accepted the plea of the respondent-assessee and granted depreciation by order dated February 15, 1985. The Revenue went in appeal before the Income-tax Appellate Tribunal against the said order of the Commissioner (Appeals). The Tribunal, by its order dated February 3, 1987, co .....

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..... ct, the requirement of ownership by the assessee will be deemed to be fulfilled if the assessee has the dominion and control over the property in his own right and not in the right of others, Where the assessee has paid full consideration and has been put in possession of the property and has been in exclusive possession and enjoyment of the property as absolute owner thereof, the mere fact that no title deed has been executed in his favour, will not deprive him of the right to claim depreciation under section 32 of the Act. In Addl. CIT v. U. P. State Agro Industrial Corporation Ltd. [1981] 127 ITR 97 (All), the assessee-corporation (hereinafter referred to as the Corporation) was a company registered under the Companies Act. The State Go .....

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..... has been put in possession of the property in part performance of the contract of sale, can even dispose of the property in the same way as if it was owned by it and the State Government could not object to it ; it could realise the income from the property and appropriate the same for itself. It was observed that the dealing with the property by the Corporation in such circumstances would have to be on its own behalf and not on behalf of the State Government, which under section 53A of the Transfer of Property Act stands debarred from enforcing any rights in respect thereof against the Corporation. It was laid down that the Corporation had, even though the ultimate title in the property had not by then vested in it, become the owner thereo .....

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