1989 (3) TMI 34

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....-These three references are at the instance of the Revenue. The respondents are assessees under the Income-tax Act (in short, "the Act"). In Income-tax References Nos. 41 and 42 of 1983, the respondent is the same assessee, Therein, the assessment years involved are 1976-77 and 1977-78. In Income-tax Reference No. 148 of 1983, the assessee is a different person. The assessment year is 1977-78. ....

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....e, the Appellate Tribunal has referred the following common questions of law in the three cases for the decision of this court : "(1) Whether, on the facts and in the circumstances of the case, the assessee is the owner of the vehicles ? (2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to depreciation on the buses ?" Counsel for the Revenue argued t....

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.... Motor Vehicles Act. A motor vehicle is movable property. The transfer of ownership thereof is governed by the Sale of Goods Act. Transfer takes effect from the date of sale. As between the transferor and the transferee, the sale is complete even before the transfer is effected in the registration certificate. The failure to report the same to the registering authority may entail levy of penalty p....

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....ght of the above decisions, we are of the view that the Appellate Tribunal was justified in holding that the assessees who purchased the vehicles and used them during the relevant previous years are entitled to the depreciation allowance. The assessees were, no doubt, the owners of the vehicles. They used the vehicles for their business and they are entitled to depreciation on the buses. We, there....