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2014 (6) TMI 292 - HC - Income TaxClaim of depreciation All assets and liabilities transferred Whether merely because title or registration under the Indian Registration Act has not passed, would it be fatal to disallow depreciation - Held that:- Possession over the property is being enjoyed by the assessee and no claim of reclaiming the assets have been made by the State Government subsequent to transfer - merely because title is not transferred or registration under the Indian Registration Act is not obtained, depreciation cannot be disallowed. Relying upon Mysore Minerals Ltd. v. CIT [1999 (9) TMI 1 - SUPREME Court] - Section 32(1) states about owning of the properties owned would not mean by way of a registration by way of title deed - value of assets has to be recognised where transfer is by way of gift or inheritance and here in the case, assets have been transferred by the Government of Rajasthan to the assessee-society and for that purpose value has been adopted as the value to the previous owner and this explanation also supports the claim of the assessee - the assessee-society had rightly been allowed depreciation by the CIT(A) and the Tribunal as the assessee-society became the owner of the assets and was actually using the property in its own right as an owner on and from the date of order of the Governor and formation of the society thus, there was no infirmity in the order of the Tribunal Decided against Revenue.
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