Beneficial ownership supports depreciation claim when a business vehicle is used and controlled, despite absence of registration.

Depreciation under section 32 was held admissible where the assessee was the beneficial owner of a truck used for business, even though the vehicle was not registered in his name. The Court treated "owned" in the depreciation provision as including beneficial or real ownership, not merely formal legal title. It also held that registration requirements under the Motor Vehicles Act are regulatory and evidentiary, and non-entry of transfer in the registration certificate does not defeat passage of title or the claim to depreciation when the assessee has purchased, used, and maintained the vehicle for business.

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Issues: Whether depreciation under section 32 of the Income-tax Act, 1961, is admissible to the beneficial owner of a motor vehicle even though the vehicle is not registered in his name under the Motor Vehicles Act.

Analysis: Section 32 allows depreciation on assets owned by the assessee and used for business. The decisive question was ownership for the purpose of that provision. The Court applied the settled principle that the word "owned" in taxing statutes may denote beneficial or real ownership, not merely absolute legal title. It noted that the assessee had purchased and used the truck for business, bore the expenses, serviced the loan, and enjoyed the beneficial use of the vehicle. The registration requirements under the Motor Vehicles Act were held to be regulatory and evidentiary in nature and not determinative of transfer of ownership. Non-entry of transfer in the registration certificate did not invalidate the passing of title or defeat the assessee's claim to depreciation.

Conclusion: Depreciation under section 32 was admissible to the assessee as the beneficial owner of the truck notwithstanding the absence of registration in his name.

Ratio Decidendi: For the purpose of depreciation under section 32 of the Income-tax Act, 1961, ownership includes beneficial ownership, and registration of a motor vehicle in the assessee's name under the Motor Vehicles Act is not a condition precedent to claiming depreciation if the assessee has in substance acquired and used the vehicle for business.

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