9911796707
TMI Blog1994 (11) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... it ? " But after hearing Mr. Ray, learned standing counsel for the Department and on a scrutiny of the order of the Tribunal, we think it appropriate to reframe the question which arises for consideration as the question formulated is not proper and the question reframed by us is : " Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in allowing the claim of the assessee for grant of depreciation in respect of Draupadi Talkies and Draupadi Ice Factory ? " The two premises belong to one Prabhat Chandra Das. The owner entered into an agreement with the company which is the assessee to transfer both the premises and in lieu thereof certain shares were allotted in the assessee-company. The assessee therea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 256(1) and having failed in its attempt, approached this court under sub-section (2) of section 256, whereupon, under the direction of this court, the question of law has been formulated and a statement of case has been made. Mr. Ray, appearing for the Revenue, contends that depreciation in respect of any building could be claimed by an assessee of which the assessee is the owner as provided in section 32 of the Income-tax Act. The assessee cannot be held to be the owner of the building until and unless the buildings are transferred by way of a registered deed. In that view of the matter, the Tribunal wholly erred in law in allowing depreciation claimed on the finding that the assessee would be held to be the beneficial own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Kerala High Court in the case of Parthas Trust v. CIT [1988] 169 ITR 334. Disagreeing with the view expressed by the Allahabad High Court and agreeing with the view expressed by the Madras High Court in the case of CIT v. Tamil Nadu Agro Industries Corporation Ltd. [1987] 163 ITR 61, the learned judges of the Kerala High Court came to hold that under section 32 of the Income-tax Act depreciation could be claimed by an owner who used the assets in question and, therefore, both the conditions of ownership as well as use had to be satisfied. The learned judges further held that the use of the expression " owned by the assessee and used for the purposes of business or profession " emphasised the fact that it was not mere user irrespective o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
