| Case ID |
21369ddc-c7a2-4a2d-bae7-d06abf05374a |
| Body |
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| Case Number |
IT REFERENCE No. 241 OF 1973 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the assessee-firm, which was a film exhibitor, was entitled to claim depreciation on the newly constructed theatre. The lease agreement stipulated that any alterations or constructions would become the property of the lessor only upon the expiry of the lease. Since the new theatre was constructed with the consent of the lessor and at the expense of the assessee, the ownership of the theatre was deemed to vest in the assessee during the lease period. This ruling affirmed the decisions of the AAC and the Tribunal, justifying the claim for depreciation under Section 32 of the Income-tax Act, 1961. |
| Summary |
In the case of Commissioner of Income Tax v. Alpana Talkies, the Bombay High Court addressed the issue of ownership and depreciation claims under the Income-tax Act, 1961. The assessee, a film exhibitor, had taken a theatre on lease for 31 years and constructed a new theatre with the lessor's consent. The primary legal question was whether the assessee could be considered the owner of the new theatre for depreciation purposes. The court found that the lease agreement explicitly stated that any constructions would belong to the lessor only upon the lease's expiration. Thus, since the assessee constructed the new theatre, it was entitled to claim depreciation. This case highlights the importance of lease agreements and ownership rights in determining tax liabilities and depreciation claims, making it a significant reference for tax law practitioners and businesses involved in similar arrangements. |
| Court |
Bombay High Court
|
| Entities Involved |
|
| Judges |
CHANDURKAR, J.
|
| Lawyers |
R.J. Joshi,
H.K. Sajnani,
S.E. Dastur,
Ajit Kapadia
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Alpana Talkies
|
| Citations |
1983 SLD 677,
(1983) 139 ITR 1055
|
| Other Citations |
Y.V. Srinivasamurthy v. CIT [1967] 64 ITR 292 (Mys.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
32(1)
|