Commissioner Of Income Tax v. Fazilka Dabwali Tpt. Company Private Limited

N.K. Sud, J.

1. The Revenue has filed this appeal under Section 260A of the Income Tax Act, 1961 (for short " the"), against the order of the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), dated March 31, 2003, pertaining to the assessment year 1989-90.

2. The only dispute raised in this case is against the findings of the Tribunal that the assessee is entitled to depreciation on the buses which were standing in the names of the directors.

3. The facts found by the Tribunal are that the buses were initially purchased by the directors and the finance was raised by them from the bankers in their individual names. However, the buses were taken over by the assessee vide resolution No. 3 dated October 30, 1988. The income of the said buses was shown and assessed in the hands of the assessee-company and the expenses relating to those buses on account of interest paid to the bank, insurance, hire purchase charges and salaries to the drivers were also being claimed as a deduction by the assessee-company. The costs of the buses are reflected in the balance-sheet of the company and the liability towards the bank against these buses on account of "term loan" was also reflected under the head "Secured loans". Thus, the Tribunal concluded that there was ample evidence on record to show that the assessee had taken over the buses from the directors and the mere fact that the same were not got registered in the names of the assessee could not be a ground for disallowing the claim of depreciation.

4. The decision of the Tribunal is in conformity with the law laid down by the apex court in CIT v. Podar Cement Pvt. Ltd. : [1997]226ITR625(SC) . In that case it has been held that though under the common law "owner" means a person who has got valid title legally conveyed to him after complying with the requirements of law such as the Transfer of Property Act, the Registration Act, etc., in the context of the Income Tax Act, 1961, having regard to the ground realities and further having regard to the object of this Act, namely, to tax the income, "owner" is a person who is entitled to receive income from the property in his own right. The Tribunal specifically approved the view of the Allahabad High Court in Addl CIT v. U. P. State Agro Industrial Corporation Ltd. : [1981]127ITR97(All) .

5. Since the order of the Tribunal is in conformity with the law laid down by the apex court, we are satisfied that no substantial question of law arises for the opinion of this court. The appeal is dismissed.