Depreciation for partner-owned assets used through a partnership remains allowable in the partner's individual assessment.

Depreciation under section 32 is allowable where the assessee owns the asset and the asset is used for the purposes of his business or profession. A partnership firm is not treated as a separate person for this purpose; its business is regarded in law as the business of the partners. Accordingly, assets owned by a partner and used in a clinic or nursing home operated through the partnership remain attributable to the partner's profession, and depreciation is available in the partner's individual assessment.

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Issues: Whether depreciation under section 32 was allowable in the individual assessment of an assessee who owned the assets but allowed them to be used in the profession carried on through a partnership firm of which he was a member.

Analysis: Depreciation under section 32 of the Income-tax Act is available in respect of buildings, machinery, plant or furniture owned by the assessee and used for the purposes of business or profession. The assessee was found to be the owner of the clinic and nursing home assets. The only dispute was whether, after the formation of the partnership, those assets could still be treated as used for the assessee's own profession. The governing principle applied was that, in law, a partnership business is not carried on by the firm as an entity distinct from its partners, but is treated as the business of the partners themselves.

Conclusion: The assessee was entitled to depreciation in his individual assessment, as the assets owned by him were used for the purposes of his profession through the partnership.

Ratio Decidendi: For depreciation under section 32, ownership of the asset and its user in the assessee's business or profession are sufficient; where the assessee is a partner in the firm using the asset, the user is attributable to the partner because the firm's business is in law the business of the partners.

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