TMI Blog2010 (1) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... not important. - 84 OF 2007 - - - Dated:- 6-1-2010 - Mr. Rajesh Kumar, J.and S.C. Nigam, JJ. Heard Sri A.N. Mahajan, learned Standing Counsel, and Sri R.P. Agarwal, learned counsel, appearing on behalf of the respondent. JUDGEMENT Hon'ble Rajes Kumar, J. In the present appeal the Commissioner of Income Tax is raising the following question of law: "(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in allowing depreciation under the provisions of Section 32 of the Act to the assessee on trucks which are in the name of Directors of the company and also on the trucks which are under hire purchase agreement ?" 2. Learned Standing Counsel submitted that under Section 32 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f directors and therefore, the Id. CIT (A) has not allowed the depreciation, the Id. A.R. submitted that the trucks have been purchased in the name of directors just for the convenience. Funds have been invested by the assessee-company. It is making regular payment of instalments to Telco/Tata Finance. The income of hire received on such trucks are credited by the company and taxed by the department as such in the hands of the company. No separate assessments of the directors have been made. No depreciation has been claimed by the directors, in fact, directors are holding the trucks as benami for assessee-company. In brief, the argument of the ld. A.R. was that the investment in the trucks and enjoyment of income from the trucks vests in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the assessee should be preferred. 14. In our opinion, the term owned as occurring in Section 32 (1) of the Income Tax Act, 1961 must be assigned a wider meaning. Any one in possession of property in his own title exercising such dominion over the property as would enable others being excluded therefrom and having right to use and occupy the property and/or to enjoy its usufruct in his own right would be the owner of the buildings though a formal deed of title may not have been executed and registered as contemplated by Transfer of Property Act, Registration Act etc. 'Building owned by the assessee'-the expression as occurring in Section 32 (1) of the Income Tax Act means the person who having acquired possession over the building in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied the benefit of Section 32. On the other hand, the Housing Board would be denied the benefit of Section 32 because in spite of its being the legal owner it was not using the building for its business or profession. We do not think such a benefit-to-none situation could have been intended by the Legislature. The finding of fact arrived at in the case at hand is that though a document of title was not executed by Housing Board in favour of the assessee, but the houses were allotted to the assessee by the Housing Board, part payment received and possession delivered so as to confer dominion over the property on the assessee whereafter the assessee had in its own right allotted the quarters to the staff and they were being actually used by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such, they have been used through agents by the firm and the income from the t hree vehicles were credited in the books of account of the assessee-firm. No doubt, the registration continues in the name of three partners, who initially acquired the vehicles. In CIT v. Dilip Singh Sardarsingh Bagga (1993) 201 ITR 995, the Bombay High Court held that registration under the Motor Vehicles Act is not an essential pre-requisite for the acquisition of ownership of the motor vehicles, but is an obligation cast upon an owner of the vehicle for the purpose of running the vehicle, but is an obligation cast upon an owner of the vehicle for the purpose of running the vehicles in any public place. As registration cannot be made in the name of the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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