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Issues: Whether, on the facts of the case, the sale transaction was conditional so that ownership passed only on payment of the price, and whether the assessee was entitled to 100% depreciation on the asset in the relevant assessment year.
Analysis: The determining factor for transfer of property in goods is the intention of the parties, as gathered from the contract, conduct, and surrounding circumstances. Where the sale is of specific goods in a deliverable state under an unconditional contract, property passes when the contract is made, and postponement of payment or delivery does not by itself defer ownership. On the record, there was no proved contractual condition showing that the transaction was contingent or that title would pass only on payment. The assessee had taken delivery of the machine before the relevant cut-off date, and the material relied upon by the Revenue did not establish a conditional sale in law.
Conclusion: The transaction was not shown to be a conditional sale, ownership did not wait upon payment, and the assessee was entitled to 100% depreciation. The issue is decided in favour of the assessee and against the Revenue.
Final Conclusion: The appeal succeeded and the assessee's claim for depreciation was upheld on the basis that delivery, not deferred payment, governed the passing of ownership on these facts.
Ratio Decidendi: In a sale of specific goods, title passes according to the parties' intention, and absent proof of a binding condition postponing transfer, delivery in a deliverable-state transaction is sufficient to establish ownership for depreciation purposes.
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