TaxTMI 
TaxTMI 
2010 (1) TMI 19
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....sessee on trucks which are in the name of Directors of the company and also on the trucks which are under hire purchase agreement ?" 2. Learned Standing Counsel submitted that under Section 32 of the Income Tax Act, 1961 (called the 'Act' for short) only the owner of the vehicle is entitled for depreciation. The company is the assessee in the present case and it claimed the depreciation on the vehicle which was in the name of the Director of the company. Therefore, in respect of such vehicle the company was not entitled for depreciation under Section 32 of the Act 3. Sri R.P. Agarwal, learned counsel for the respondent, submitted that the Tribunal found that the trucks have been purchased in the names of the Directors just for the conveni....
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....directors are holding the trucks as benami for assessee-company. In brief, the argument of the ld. A.R. was that the investment in the trucks and enjoyment of income from the trucks vests in the company. The assessee is de facto owner of the trucks and there is no obligation with it to transfer any income of the truck to the directors. He relied on the decision of Punjab and Haryana High Court in 70 ITR 398 and of Allahabad High Court in 235 ITR 158 (All.). Expenditure relating to registration is also debited in the books of the company. No part of the finance is made by the directors. The A.R. also submitted that insurance also in respect of those trucks is in the name of the assessee and payment thereof is also made by the assessee-compan....
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....ration Act etc. 'Building owned by the assessee'-the expression as occurring in Section 32 (1) of the Income Tax 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 consistently with the requirements of laws such as Transfer of Property Act and Registration Act etc. but nevertheless is entitled to hold the property to the exclusion of all others. 18. An overall view of the above said authorities show 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 capital asset and th....
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....vered so as to confer dominion over the property on the assessee whereafter the assessee had in its own right allotted the quarters to the staff and they were being actually used by the staff of the assessee. It is common knowledge, under the various schemes floated by bodies like housing boards, houses are constructed on large scale and allotted on part payment to those who have booked. Possession is also delivered to the allottee so as to enable enjoyment of the property. Execution of document transferring title necessarily follows if the schedule of payment is observed by allottee. If only the allottee may default the property may revert back to the Board. That is a matter only between the Housing Board and the allottee. No third person ....
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....ehicle, but is an obligation cast upon an owner of the vehicle for the purpose of running the vehicles in any public place. As registration cannot be made in the name of the firm, the registration continued in the name of the three partners, who initially owned the vehicles. In CIT (Addl.) v. U.P. State Agro Industrial Corporation Ltd. (1981) 127 ITR 97, this court held that the expression "building owned by the assessee" in section 32 of the Income-tax Act, 1961, has not been used in the sense of property, complete title in which vests in the assessee. The assessee will be considered to be an owner of the building under section 32 if he is in a position to exercise the rights of the owner not on behalf of the person in whom the title ves....