1991 (1) TMI 87

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....VAN REDDY C. J. -The Income-tax Appellate Tribunal, Allahabad, has referred the following question under section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue : "Whether, on the facts and in the circumstances of the case, was the Tribunal in law, justified in taking into consideration the depreciation suffered by the buses in question in estimating the net taxable income ? ....

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....ibunal adopted a different course. But, before we notice the course adopted by the Tribunal, it would be appropriate to notice its findings. These are : (1) The respondent-assessee was not the owner of the buses and the buses were owned by individual members. (2) In this sense, depreciation cannot be allowed in the hands of the assessee. Since the assessee is not the owner of the buses but a....

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.... for depreciation of machinery amongst other assets provided they were the "property of the assessee". The said idea has been made clearer in section 32 of the 1961 Act which says that the machinery, etc., must be "owned by the assessee". Be that as it may, the Supreme Court has recently construed the said word occurring in section 10(2)(vi) of the 1922 Act and held that depreciation under the sai....