Beneficial ownership supports depreciation where possession, consideration, and dominion over property have passed despite unregistered title.

Depreciation was allowable on factory and office buildings even though the conveyance deed was not registered by the end of the accounting year, because the assessee had paid substantial consideration, taken possession, and exercised dominion over the property in its business. The absence of formal registration was not decisive where beneficial and practical ownership had passed to the assessee. On those facts, the right to depreciation followed from control and use of the asset rather than completed legal title.

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Issues: Whether depreciation was allowable on factory and office buildings where the conveyance deed had not been registered in favour of the assessee by the end of the accounting year.

Analysis: The assessee had entered into an agreement, paid a substantial part of the consideration, obtained possession, and was using the factory in its business. Registration of the conveyance deed had not been completed, but the absence of a registered title document was not decisive where possession and control had passed to the assessee. On these facts, the right to claim depreciation followed from the assessee's dominion over the property.

Conclusion: Depreciation was allowable notwithstanding the non-registration of the conveyance deed, and the issue was decided in favour of the assessee.

Ratio Decidendi: For depreciation, ownership in the beneficial and practical sense is sufficient where the assessee has paid consideration, taken possession, and exercises dominion over the property, even if legal title has not yet been formally registered.

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