SCR 192 The Judgment was delivered by R. C. LAHOTI J. C. LAHOTI J. The appellant assessee is a private limited companypany.
owned by the assessee and used for the purposes of the business or profession.
The Tribunal in an appeal preferred by the Revenue set aside the decision of the Commissioner of Income tax.
On an application under section 256 1 of the Act filed by the appellant, the following question was referred by the Tribunal for the opinion of the High Court Whether, on the facts and in the circumstances of the case, the Tribunal was right in rejecting the claim of the assessee for depreciation in respect of the seven houses in respect of which the assessee has number obtained a deed for companyveyance from the vendor although it had taken possession and made part payment of the companysideration ?
1999 1 Supp.
The aggrieved assessee has preferred this appeal pursuant to a certificate under section 261 of the Act granted by the High CourtSection 32 of the Act allows certain deductions, one of them being depreciation of buildings, etc.,
The Commissioner of Income tax allowed the appeal preferred by the assessee and directed the Assessing Officer to allow the assessees claim for depreciation inasmuch as the companypany was acting as the owner and companyld exercise the rights of the owner qua the houses.
During the assessment year 1981 82 accounting year ending on March 31, 1981 , the assessee had purchased for the use of its staff seven low income group houses from the Housing Board.
The assessee had made part payments and was in turn made allotment of the houses followed by delivery of possession by the Housing Board.
The actual deed of companyveyance was number yet executed by the Housing Board in favour of the assessee.
The assessee made a claim under section 32 of the Income tax Act, 1961, in respect of depreciation of buildings used for the purpose of the business of the assessee, The claim was rejected by the Assessing Officer forming an opinion that the assessee had number become owner for want of deed of companyveyance in its favour.
