2009 (11) TMI 127

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....ting the following common substantial questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing depreciation of Rs. 4,88,901 when the assessee was only a beneficial owner of the bus? 2. Whether under section 32 of the Income-tax Act, 1961, depreciation can be claimed by the beneficial owners or the real owner of the asset?" 2. As the issue involved in both these appeals is one and the same, the facts relating to T. C. A. No. 1261 of 2009 are stated below by taking it as a typical case for the sake of discussion: 3. The relevant assessment year is 2002-03. The assessee is an individual and filed return of income for the assessment year 2002-03 on October 31, 2002, admitti....

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.... the expenditure has been received and expended only by the assessee the Assessing Officer on the ground that mere admission of the income of the assessee in the assessee's hands cannot per se permit the assessee to claim higher rate of depreciation and rejected the claim of depreciation sought for by the assessee. On appeal at the instance of the assessee, the Commissioner of Income-tax (Appeals) accepted the case of the assessee and allowed the appeal. The further appeal to the Tribunal has also ended in dismissal. The present appeals are filed challenging the common order of the Tribunal dated September 21, 2007, made in respect of the asscssee as well as her husband. 4. We heard the argument of the learned counsel for the Revenue, wh....

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....ome-tax Act, 1961, having regard to the ground realities and further having regard to the object of the Act, viz., to tax the income, "owner" is a person who is entitled to receive income from the property in his own right. In order to claim the benefit of section 32 of the Income-tax Act, it is not necessary that the assessee should be a complete owner. The expression "owner" used in section 32 of the Act has been considered by taking into account all its phrases and aspects. The owner need not necessarily be a lawful owner entitled to pass on the title of the property to another. Vide CIT v. Podar Cement P. Ltd. reported in [1997] 226 ITR 625 (SC), CIT v. General Marketing and Manufacturing Co. Ltd. reported in [1996] 222 ITR 574 (Cal) an....