Short Overview: Though vehicles were registered in the name of directors of company, however, beneficial ownership vested with assessee since payment was made for purchase of vehicles by the assessee, therefore, assessee was duly entitled for depreciation thereon, especially when assessee had claimed other expenses in connection with vehicle and non-disallowance thereof proved use of vehicles for assessee’s business purpose.

Assessee-company claimed depreciation on vehicles. AO denied assessee’s claim on the ground that vehicles were registered in the name of directors of company.

It is held that though vehicles were registered in the name of directors of company, beneficial ownership vested with assessee since payment was made for the purchase of vehicles by the assessee. Thus, assessee was duly entitled for depreciation thereon, especially when assessee had claimed other expenses in connection with vehicle and non-disallowance thereof proved use of vehicles for assessee’s business purpose.

Decision: In assessee’s favour.