Depreciation on purchased motor vehicles may be allowed despite pending transport registration, where title passed on sale and delivery.

Depreciation on purchased motor vehicles used in business can be allowed even if the vehicles were not transferred in the assessee's name in transport records. For movable assets, ownership passes on sale and delivery, and registration in the transferee's name is not a condition for title. The motor vehicle transfer-intimation requirements were treated as regulatory and consequential, not as affecting ownership. Authorities dealing with immovable property were held inapplicable, while decisions supporting depreciation on acquired vehicles were followed. On that basis, the assessee was treated as the owner of the mini truck and car for depreciation purposes.

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Issues: Whether depreciation on the mini truck and car was allowable to the assessee despite the vehicles not being transferred in the assessee's name in the transport records.

Analysis: The assets were purchased for consideration as part of a going concern and were used for the assessee's business. The distinction between immovable property and movable property was material: for movable assets, title passes on sale and delivery, and registration in the transferee's name is not a condition for passing ownership. The provisions dealing with transfer intimation under the motor vehicle law were treated as regulatory and consequential, not as provisions affecting title. The authorities cited by the Revenue, which concerned immovable property, were held inapplicable, while the decisions supporting depreciation on purchased motor vehicles were followed.

Conclusion: Depreciation was rightly allowed, and the assessee was held to be the owner of the vehicles for this purpose.

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