TMI Blog2006 (10) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... was standing in the names of two of the partners. It was found by the Assessing Officer that as per the title deed in respect of the office building, the same was purchased in the names of the partners and the title deed was pledged with Nedungadi Bank Ltd. for availing overdraft facilities. The Assessing Officer was of the opinion that merely because the assessee has made finances for purchasing the said building or that the property was shown among the fixed assets in the assessee s books of account was not conclusive of the ownership of the property and the same is required to be registered in the name of the assessee. In the opinion of the Assessing Officer, the assessee-firm was not the owner of the property and, therefore, no depreci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct between the partners and all the assets of the firm vest in the partners. In our opinion, this decision is distinguishable on facts. 5. In the case of M.A. Unneerikutty ( supra ), the assessee and his wife purchased a plot of land and constructed a hotel building on it and thereafter, a limited company was formed wherein the assessee and his wife were the only shareholders. The assessee and his wife invested amounts in the construction of the building and the amount was satisfied by the issue of shares of the limited company to them. The Assessing Officer assessed the income from property in the hands of the assessee by estimating the annual letting value on the ground that the land on which the building stood was not transferred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets for the assessment year 1973-74 and this was granted by the Tribunal. On a reference, the Hon ble High Court held that the registered sale deed is necessary to confer ownership. Since the assessee was not the owner of the assets in that year they were not entitled to depreciation. In our opinion, this case is also distinguishable on facts. 8. On considering the facts of this case that the assessee is a partnership firm, though under the Income-tax Act it is assessed as a separate entity, but under the Indian Partnership Act, it is not a legal entity and it is not distinct from its partners. Moreover, the funds required for purchasing the said building is made by the assessee-firm. We are of the opinion that merely because the bui ..... X X X X Extracts X X X X X X X X Extracts X X X X
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