9911796707
TMI Blog1977 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... d that, in pursuance of the terms of that agreement, Rs. 7,00,000 were paid by the assessee to the owner as part of the sale consideration against the total sale price fixed at Rs. 7,50,000. It is also not disputed that the possession of the property was handed over to the assessee in pursuance of the said agreement. The assessee started running the cinema and claimed in his annual return depreciation in respect of the building, machinery, etc., for the assessment years 1966-67 and 1967-68. The assessing authority disallowed the said depreciation on the ground that the assessee had not become the " owner " of the assets, because no deed of conveyance was either executed or registered in favour of the assessee. The order of the ITO was, howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Refrigeration P. Ltd. [1976] 103 ITR 455 have decided the question against the assessee, but according to Mr. H. M. Parekh, that judgment of the Delhi High Court is not binding on this court and since there is no direct decision of the Supreme Court or of this court on the point involved in these cases, the question of law raised by the assessee should in all fairness be referred to and answered by this court. Mr. S. K. Mal Lodha, appearing on behalf of the revenue, referred to certain cases of some other High Courts, which have a direct bearing on the question raised by the assessee, but he could not point out any judgment of the Supreme Court, except the two judgments referred to in the order of the Tribunal which according to him may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties regarding the points argued before us. Suffice it to say that the question involved is undoubtedly a question of law and, in the light of the circumstances of these cases, we can say that there is a substantial question of law which needs consideration by this court, as there is no direct case of the Supreme Court or of this court on the point involved herein. We, therefore, direct that the Income-tax Appellate Tribunal may state the case and refer the following question to this court for answer : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is not entitled to the claim of depreciation." The applications are disposed of accordingly. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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