1982 (6) TMI 1

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..... nd 1974-75, we are called upon to answer the following question : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee is not entitled to depreciation in respect of the assets shown in the books of account of the partnership as the assets of the partnership ? " The assessee is an individual. Till the accounting year rel .....

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..... exclusive property of the assessee and the other partner will have no manner of right over the same by reason of his becoming a partner of the firm. But, in the books of account of the partnership, all the assets and liabilities of the assessee in the business he was running were brought in as assets and liabilities of the firm. The assessee was given full credit for Rs. 1,52,560 in his capital a .....

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..... in his assessment. The Appellate Assistant Commissioner, considering the terms of the partnership deed, upheld the assessee's claim. According to him, if the firm prepared a balance-sheet taking the assets as those of the firm, that did not alter the correct legal position and, therefore, the assets continued to be those of the assessee. The Appellate Tribunal before whom the Department took up th .....

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..... rse the entries. Finally, it found that, on the finding that the assets were partnership property, the assessee was not entitled to depreciation. The question referred to us does not concern the finding that the firm and not the assessee is the owner of the assets. It is concerned only with the question whether the assessee is entitled to depreciation, on the facts and circumstances of the case. .....

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..... allowed, the question referred is only whether depreciation should be allowed. (See Md. Salih v. CIT [1973] Tax LR 775 (Ker)). Therefore, so long as there is no challenge to the basic finding, the answer can be only against the assessee. Hence, we answer the question in the affirmative, that is, in favour of the Department and against the assessee. A copy of this judgment under the signature of .....

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