Depreciation on beneficial ownership of vehicle allowed where assessee funded, used, and accounted for truck in business.

Depreciation was allowed on a truck standing in another person's name because the assessee had borne the full cost, shown the asset in its balance sheet, used it in its transport business, and met related expenses such as registration and insurance. The Tribunal treated beneficial ownership and business use as sufficient for depreciation where the assessee had in substance acquired and exploited the vehicle, and followed an earlier Tribunal decision on the same point. The departmental appeal failed.

---

---

Issues: Whether the assessee was entitled to depreciation on a truck standing in the name of another person but purchased, financed, and used by the assessee for its business.

Analysis: The Tribunal noted that the assessee had borne the entire cost of the vehicle, reflected it in its balance sheet, derived transport income from it, and met incidental expenses such as registration and insurance. The issue was held to be covered by an earlier Tribunal decision, which was followed.

Conclusion: The assessee was entitled to depreciation on the truck. The departmental appeal failed.

---