Government grant transfers can establish ownership for depreciation claims without a registered conveyance.

A Government transfer of land and buildings under the Government Grants Act, 1895 can confer ownership for tax purposes even without a registered conveyance, because such grants are not governed by the Transfer of Property Act, 1882. On the facts, the Government order, title deeds and revenue records showed that the property had already been transferred under the grant framework, so the absence of a registered sale deed did not defeat the assessee's claim. Depreciation on the buildings was therefore allowable, and the revenue's challenge failed.

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Issues: Whether the assessee was entitled to depreciation on the buildings despite the absence of a registered conveyance, in view of the Government order transferring the lands and buildings and the applicability of the Government Grants Act.

Analysis: The ownership question was examined in the light of the Government order, the transfer of title deeds, and the entries in the revenue records. The reasoning distinguished cases where transfer depended upon a sale deed and applied the principle that a transfer by the Government can fall within the Government Grants Act, 1895, so that the Transfer of Property Act, 1882 does not govern such transfer. On that basis, the absence of a registered document did not defeat the assessee's claim when the property had already been transferred under the Government grant framework.

Conclusion: The assessee was entitled to depreciation on the buildings, and the revenue's challenge failed.

Final Conclusion: The order allowing depreciation was sustained, and the revenue appeal was rejected.

Ratio Decidendi: A transfer by the Government under the Government Grants Act, 1895 can confer ownership for tax purposes without a registered conveyance, and the Transfer of Property Act, 1882 does not control such government grants.

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