TaxTMI 
TaxTMI 
2011 (6) TMI 564
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.... can be proceeded with in the absence of the assessee, we are doing so. 3. The assessee company is engaged in the business of mechanized manufacture of fly ash based construction material known as Autoclave Aerated Concrete. During the year, it claimed 10% depreciation, amounting to Rs. 34,63,965/-, on factory building. The AO observed that as per clause (i) of the Notes to Accounts attached with the assessee's audited accounts, the immovable properties including freehold land and buildings vested in the company on purchase of Unit AAC Palwal from PETL are pending formal registration of title deed/ownership rights in the then name of the company and that the expenditure for cost of stamp duty towards registration of these items of fixed as....
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..... Premium Energy Transmission Limited. The business there at was of manufacture of Autoclave Aerated Concrete Products. As per the agreement itself, the assessee company carried on the business of manufacture and sale of Autoclave Aerated Concrete Products during the financial year 2004-05. For assessment year 2005-06, depreciation on the assets acquired, from M/s. Premium Energy Transmission Limited, was granted u/s 143(1) of the I.T. Act. 10. The above facts have remained undisputed. The AO made the disallowance only for the reason that the registration of the factory in the name of the assessee company was pending and had not been finalized. It also remains unrebutted that the building was used exclusively for the purpose of the assesse....
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....) of the Act means the person who, having acquired possession over the building in his own right, uses the same for the purposes of the business or profession, though a legal title has not been conveyed to him strictly with the requirements of the law, such as the Transfer of Property Act and the Registration Act, etc., but nevertheless, is entitled to hold the property to the exclusion of all others; that generally speaking, depreciation is an allowance for the diminution in the value due to wear and tear of capital asset employed by an assessee in his business; that the very concept of depreciation suggests that the tax benefit on account of depreciation legitimately belongs to one who has invested in the capital asset, is utilizing the c....
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....e company was, thus, exercising such dominion over the factory premises as excluded other than from the possession and use of the said building. Since the assessee had undisputedly purchased the building from M/s. Premium Energy Transmission Limited vide agreement dated 20.5.2004, as a going concern, for a gross consideration of Rs. 13.75 crores, the assessee was, obviously, having the right to use and occupy the building and it had done so and was continuing to do so, as the owner thereof. The assessee was, thus, entitled to hold the property to the exclusion of all others. The assessee had invested in the capital asset, which capital asset was being utilized by the assessee. Due to such utilization, the assessee was gradually losing the i....