Depreciation on purchased motor lorries is allowed despite missing registration when ownership and business use are established.

Depreciation under section 32 is available where the assessee owns the asset and uses it for business, and registration under the Motor Vehicles Act is not a precondition to title in movable property. Ownership of motor lorries passed on purchase and delivery, and the lorries were used in business, so the absence of registration in the assessee's name did not defeat the claim for depreciation. The operative effect is that tax depreciation may be claimed on delivered and used vehicles even if transfer registration has not yet been completed.

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Issues: Whether depreciation under section 32 of the Income-tax Act, 1961 was allowable on motor lorries purchased and delivered to the assessee, though they were not registered in the assessee's name under the Motor Vehicles Act, 1939.

Analysis: Depreciation under section 32 is available where the asset is owned by the assessee and used for business. In the case of movable property, ownership passes on transfer of property for consideration and delivery of possession, and registration is not essential for acquisition of title. The provisions relating to registration under the Motor Vehicles Act, 1939 require registration for lawful use on public roads and for intimation of transfer, but they do not make registration in the transferee's name a precondition for ownership. The assessee had purchased the lorries, taken delivery, and used them in its business, so the absence of registration did not defeat ownership for depreciation purposes.

Conclusion: Depreciation was allowable, and the assessee's claim succeeded.

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