TMI Blog1973 (7) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the depreciation can be withdrawn by a rectification on the ground that the assessee was not the owner - On this issue two views were possible, so rectification orders were quashed - - - - - Dated:- 12-7-1973 - Judge(s) : G. K. GOVINDA BHAT., K. JAGANNATHA SHETTY. JUDGMENT The judgment of the court was delivered by GOVINDA BHAT C.J.-These are two writ petitions by a common assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Aggrieved by the said orders of the respondent, the petitioner has approached this court for relief under article 226 of the Constitution. Section 5 of the Act provides for deduction on account of depreciation allowance under various heads. Clause (e) of the said section provides for granting depreciation in respect of buildings, machinery, plant, etc., which are the property of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n disposed of on hire purchase system. In that case, the hirer claimed the depreciation, but was disallowed on the ground that the hire purchase system is nothing but a sale or an agreement to sell with an extended period of instalments. In Srianghacharyulu v. Commissioner of Income-tax, which was also a case of claim in respect of a bus bought on hire purchase agreement by the assessee, it was he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Two views are possible on this question; such a case is not a matter which can be rectified under section 37 of the Act. It is not merely the hire purchase agreement that has to be looked into, but other documents and circumstances also. In that view the petitioner is entitled to succeed. Accordingly, we allow these writ petitions and quash the impugned orders of rectification dated July 22, 1971 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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