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TMI Blog1983 (8) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion: Whether, on the facts and circumstances of the case, the assessee-company is entitled to claim depreciation under section 32(1) of the Income-tax Act, 1961, in respect of building, machinery and plant of the Crown Flour Mills, Delhi? 2. The assessee is a private limited company running a cold storage and flour mill. The relevant year for which the question arises is the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Crown Flour Mills for a sum of ₹ 3,75,063 to the assessee, which price was to be shown as paid in the form of a loan advanced to the assessee on an interest of 5 per cent per annum. The board of directors of the assessee by its resolution, dated 1-2-1957, approved the decision to purchase the Crown Flour Mills on the above terms and conditions. The resolution also approved of the takin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no sale deed executed till 31-12-1961. 3. In its return for the assessment year 1962-63, the assessee claimed depreciation on the assets of the Crown Flour Mills. The ITO rejected this claim. The AAC allowed the claim on appeal. The Tribunal on further appeal upheld the decision of the AAC. The Commissioner sought a reference on the question of law contending that the assessee could not cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es' appearing in section 32(1) of the Income-tax Act, 1961, and these words merely clarified the position that already existed under section 10(2)( vi) of the Indian Income-tax Act, 1922. The interest which a person had in a property by virtue of section 53A of the Transfer of Property Act, 1882, did not amount to ownership of the property. The Crown Flour Mills constituted immovable property ..... X X X X Extracts X X X X X X X X Extracts X X X X
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