1983 (8) TMI 311

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....ench 'C has referred to this Court the following question of law for its opinion: "Whether, on the facts and circumstances of the case, the assessee-company is entitled to claim depreciation under section 32(1) of the Income-tax Act, 1961, in respect of building, machinery and plant of the Crown Flour Mills, Delhi?" 2. The assessee is a private limited company running a cold storage and ....

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....company and to sell the stock-in-trade and other assets and liabilities of the Crown Flour Mills for a sum of Rs. 3,75,063 to the assessee, which price was to be shown as paid in the form of a loan advanced to the assessee on an interest of 5 per cent per annum. The board of directors of the assessee by its resolution, dated 1-2-1957, approved the decision to purchase the Crown Flour Mills on the ....

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....ounting year relevant to the assessment year 1962-63, i.e., there was no sale deed executed till 31-12-1961. 3. In its return for the assessment year 1962-63, the assessee claimed depreciation on the assets of the Crown Flour Mills. The ITO rejected this claim. The AAC allowed the claim on appeal. The Tribunal on further appeal upheld the decision of the AAC. The Commissioner sought a reference....

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....e' had the same meaning as the words 'owned by the assesses' appearing in section 32(1) of the Income-tax Act, 1961, and these words merely clarified the position that already existed under section 10(2)( vi) of the Indian Income-tax Act, 1922. The interest which a person had in a property by virtue of section 53A of the Transfer of Property Act, 1882, did not amount to ownership of th....