TMI Blog2001 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal was legally justified in directing to allow depreciation on the vehicles which were not registered in the name of the assessee-firm? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in observing that assessment framed in the case of this assessee should be treated as substantive and not protective specially in view of the fact that while completing the assessment in the case of a firm consisting of six partners has established beyond doubt that the assessee-firm was only benami of Mohd. Bux Shokat Ali of six partners?" The first question relates to allowing the depreciation on the vehicles in the assessment of the firm where the vehicles were not registered in the name of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration for the purchase of such vehicles has been met by the firm consisting of eight partners and debited to the books of account of the firm only. It is also a finding of fact arrived at by the Tribunal that the vehicles have been exclusively used for the purpose of the business of the firm. It is merely because the vehicles have been registered under the Motor Vehicles Act in the name of one of the partners only, it would not deprive the firm of the ownership of the vehicle which is not distinct from its partners. It has been brought to our notice by learned counsel for the respondent that the principle has been settled by the Supreme Court while considering the question of ownership of an asset subject to the claim of depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed of title may not have been executed and registered as contemplated by the Transfer of Property Act, Registration Act, etc...." It is well settled that there cannot be two owners of the property simultaneously and in the same sense of the term. The intention of the Legislature in enacting section 32 of the Act would be best fulfilled by allowing deduction in respect of depreciation to the person in whom for the time being vests the dominion over the building and who is entitled to use it in his own right and is using the same for the purposes of his business or profession. Assigning any different meaning would not subserve the legislative intent. Thus the principle has been settled by the Supreme Court and on the application of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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