9911796707
TMI Blog1982 (8) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... of the depreciation. According to the ITO, the bus was purchased on 28-4-1977, for a consideration of Rs. 1,03,038.37. The chassis was fabricated in the following month when a bill dated 20-6-1977 was handed to assessee by Sutlej Coach Builders for Rs. 34,000. This vehicle was registered only on 14-7-1977 after the accounting year in issue had ended on 30-6-1977. According to the ITO, no road tax for this vehicle had been paid during the year in issue in respect of which assessee is claiming depreciation. According to the ITO, assessee could ply the bus on the road only after its registration had been effected on 14-7-1977. He could not put the bus on road before 14-7-1977, i.e., registration or before 14-11-1977, that is having paid the ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the full and the legal owner of the vehicle No. PUX 905 even before the vehicle was registered. He had made the payment and the vehicle was in his possession. Registration was a requirement to put the vehicle on the road according to law. It did not indicate his ownership or title. Registration permitted him to use the road after paying the road tax but it did not go to supplement his title or ownership which already was fully vested in him by reason of having made the payment over the engine and the expenditure incurred over the fabrication of the chassis on it. As far as the assessment of income of the vehicle is concerned, the lower authorities have not properly applied their mind. In fact, the account of bus No. PUS was the account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly for making some income which may be paid towards the heavy instalment due for payment on borrowing. Therefore, the lower authorities acted in error and denied him the rightful claim of depreciation to which he is entitled. The departmental representative supported the findings of lower authorities. 3. Having heard the respective submissions, it is not possible for us to agree with the findings of the lower authorities in this matter. We must record that in reaching a finding to decline the claim of the assessee for depreciation on the new vehicle, they have made too much of the difference between the letters PUS and PUX. Accounts are not written by scholars and pundits, but by ordinary people who do not differentiate too much between ..... X X X X Extracts X X X X X X X X Extracts X X X X
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