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2017 (11) TMI 446 - AT - Income TaxDisallowance of depreciation on motor car - beneficial ownership - addition on the ground that the motor car was registered in the name of the individual Director and not the appellant-company - Held that:- Though the vehicle was registered in the name of the director of the assessee company, but however, the other material facts which were brought to the notice of the lower authorities by the assessee, viz. (i). that the payment towards the purchase consideration for the motor car was made by the assessee company from its bank accounts; (ii). the motor car was reflected as an asset in the balance sheet of the assessee; and (iii). the day to day running expenses of the motor car were incurred by the assessee, duly established that the assessee company was the defacto owner of the motor car. We are of the considered view that the lower authorities had failed to appreciate the said material facts which have a strong bearing on the adjudication of the issue under consideration. We are of the considered view that in the backdrop of the aforesaid facts, it can safely be concluded that though the assessee company was not vested with the legal ownership of the vehicle, but then, it remained the beneficial owner of the same. We thus being of the considered view that the assessee was duly entitled towards the claim of depreciation on the aforesaid motor car, set aside the order of the CIT(A) and delete the disallowance - Decided in favour of assessee.
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