COMMISSIONER OF INCOME TAX Vs. A B C INDIA LIMITED

JUDGEMENT

(1.) IN this reference under S. 256(1) of the IT Act, 1961 (for short "the Act"), the following question has been referred for opinion of this Court :

(2.) THE facts for the purpose of answering this question may be narrated as follows: The assessee is a limited company having transportation business and purchased flats and office premises on ownership basis at various places in India, i.e., at Bombay, Calcutta and Poona. However, there were no registered sale deeds in favour of the assessee with regard to those flats and office premises. The assessee claimed depreciation allowance under S. 32(1) of the Act. However, this was disallowed by the AO, i.e., the ITO, in view of the provisions contained in S. 32 of' the Act. As per the said section only the owner is entitled to get depreciation allowance. Being aggrieved, the assessee preferred an appeal before the CIT(A) and the CIT(A) after hearing the parties confirmed the disallowance made by the AO. Further appeal was preferred by the assessee before the Tribunal and the Tribunal, however, decided the issue in favour of the assessee and allowed depreciation. While deciding the issue the Tribunal observed thus:

(3.) THE Revenue being dissatisfied with the decision of the Tribunal requested the Tribunal to refer the said question under S. 256(1) of the Act for the opinion of this Court. Hence, the present reference.