TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether depreciation under section 32 of the Income-tax Act, 1961 is allowable in respect of immovable property where the assessee has taken over the asset for consideration and exercises dominion over it, but no registered deed of conveyance has been executed.
Analysis: Depreciation under section 32 is available for buildings, machinery, plant or furniture owned by the assessee and used for business or profession. The expression "owned by the assessee" was construed in the light of the Supreme Court's interpretation that, for income-tax purposes, ownership is not confined to absolute legal title. A person who has acquired possession in his own right, exercises dominion over the property, can exclude others, and uses it for business may be treated as the owner for depreciation purposes even if formal legal title has not been conveyed through a registered instrument. The court applied that wider and beneficial meaning of ownership to the facts before it.
Conclusion: The assessee was entitled to depreciation under section 32 despite the absence of a registered transfer of legal title, and the answer to the reference was in the affirmative, in favour of the assessee.
Ratio Decidendi: For the purpose of section 32 of the Income-tax Act, 1961, "owned by the assessee" includes a person who has acquired possession and effective dominion over the property for its business use, even though legal title has not been formally conveyed by a registered deed.
TaxTMI 
