TMI Blog2011 (6) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property which the assessee was capable of and that being so, evidently, it was the obvious intention of the assessee to exclude others from exercising such control and it was this, which showed the element of ownership of the assessee company over the factory premises acquired, appeal filed by the Department is dismissed - I T APPEAL NO. 1537 (DELHI) OF 2011 - - - Dated:- 3-6-2011 - G.E. VEERABHADRAPPA, A.D. JAIN, JJ. Mrs. Anusha Khurana for the Appellant. ORDER A.D. Jain, Judicial Member This is Department's appeal for the assessment year 2006-07, contending that the learned Commissioner of Income Tax(Appeals) has erred in deleting addition of Rs. 34,63,965/-, made on account of disallowance of extra depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oing so, the ld. CIT(A) has ignored the fact that the assessee failed to prove the ownership of the asset and that this is the pre-requisite for claiming depreciation. 7. We have heard the learned DR and have perused the material on record. The issue is as to whether the learned CIT(A) committed any error in deleting the disallowance made by the AO on account of claim of extra depreciation on factory building. 8. The stand of the Department is that the pre-requisite for grant of claim of extra depreciation on factory building is proof of ownership thereof, which proof is absent in the present case. 9. The AO made the disallowance on the basis of the Notes to Accounts, attached with the assessee's audited accounts. As per Note (i), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wnership can also entitle an assessee to claim depreciation u/s 32. The Hon'ble Supreme Court observed that the terms "own", "ownership", "owned" are generic and relative terms, having a wide and also a narrow connotation; that the meaning thereof would depend on the context in which the terms are used; that the word "owned" as occurring in section 32(1) of the I.T. Act must be assigned a wider meaning; that anyone in possession of property in his own title, exercising such dominion over the property as would enable others being excluded therefrom and having a right to use and occupy the property and/or to enjoy its usufruct in his own right, would be the owner of buildings, though a formal deed of title may not have been executed and regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame for the purposes of his business or profession; and that assigning any different meaning would not subserve the legislative intent. 12. In National Industrial Corpn. Ltd. v. CIT [2002] 258 ITR 575/124 Taxman 413 (Delhi), it has been held, inter alia, that where the possession of a property is acquired with a right to exercise such necessary control over the property acquired which it is capable of, it is the intention to exclude others which evinces an element of ownership. 13. In the present case, as seen, it has remained uncontroverted that the factory premises acquired by the assessee company was in the possession of the assessee company and was being used for its business purpose of mechanized manufacture of fly ash construction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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