Law:

Section:

Section 32 of the Income-tax Act, 1961, read with section 2 of the Government Grants Act, 1895 - Depreciation - Allowance - Rate of - Assessment year 1971-72 - State Government transferred three raw materials depots to control of assessee for certain consideration - ITO rejected assessee's claim for depreciation on ground that ownership of properties in question was not transferred in favour of assessee by registered documents - Tribunal, however, allowed assessee's claim - Whether term 'other transfers' occurring in section 2 of Government Grants Act, 1895 was wide enough to cover instant transfer of three raw materials depots made by State Govt. to assessee for consideration - Held, yes - Whether, therefore, registration of conveyance deed transferring three raw materials depots to assessee was not necessary for effecting transfer of ownership in favour of assessee - Held, yes - Whether, in such circumstances, Tribunal rightly held that assessee was owner of three raw materials depots and was entitled to depreciation allowance - Held, yes FACTS During the relevant assessment year the State Government transferred three raw materials depots to the control of the assessee for certain amount. The ITO disallowed the claim for depreciation on the ground that the ownership of the properties referred to above was not transferred in favour of the assessee by registered documents. On second appeal the Tribunal held that the State Government had transferred in favour of the assessee the three raw material depots and the sale consideration for the transfer had also been paid and the assessee was in possession of the raw material depots. The Tribunal further found that the provisions of the Transfer of Property Act would not apply to the transfer made by the State Government in favour of the assessee in view of section 2 of the Government Grants Act, 1895, and no registered conveyance was required for effecting the transfer in favour of the assessee and the assessee being the owner of three raw material depots was entitled to the depreciation claimed. On reference : HELD A plain reading of section 2 of the Government Grants Act, 1895, shows that the term 'other transfer'…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492