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2011 (11) TMI 72 - HC - Income TaxClaim of depreciation - ownership of assets - AO observed that the transactions entered into by the assessee vis-à-vis the assets on which the depreciation was claimed was not genuine. - Held that:- On a question of fact, namely, as to at what point of time the assessee (if at all) became the owner of the asset, there can be no ambivalent stands taken by the assessee. If it had taken such stands – as the present assessee has – then there should be an explanation for the same which is lacking. It needs no reiteration that Sec.32 can be availed of by the assessee only if he can show and establish that he is the owner of the asset. In the present case the Tribunal after examining the factual matrix on preponderance of probabilities has held that the appellant-assessee is not the owner. The said finding is a finding of fact, which is not under challenge. It is not a finding which is perverse. The agreement between the appellant and FLCIL - The said agreement has been given the nomenclature of hire-purchase agreement. The judgments relied upon by the appellant would show and establish that FLCIL is the owner of the assets and not the appellant. If FLCIL is the owner, they are entitled to depreciation and it does not matter if FLCIL had not claimed depreciation. - Claim of depreciation disallowed - decided against the assessee.
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