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High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE SHIVAPPA & THE HONOURABLE MR. JUSTICE VENKATASWAMY
Commissioner of Income Tax - Appellant
Versus
Tamil Nadu Small Industries Development Corporation Limited - Respondents
TC NO. 465 of 1981
Decided On : 29 April 1994
Registration of Conveyance Deed - Taxation - The court held that registration of conveyance deed transferring certain buildings, plant, and machinery by the Government to the assessee is not required and depreciation claimed should be granted. The income from letting out the Service Corporation, Guindy, should be assessed as income from property and the assessee is entitled to the allowance at 1/6th of the annual letting value towards repairs, even when the assessee is not the owner of the building transferred by the Government.
Fact of the Case:
The Revenue raised questions regarding the registration of conveyance deed and the assessment of income from letting out the Service Corporation, Guindy.
Finding of the Court:
The court found that the decision in CIT v. Tamil Nadu Small Industries Development Corporation Ltd. squarely applies to the facts of this case, and therefore, answered both questions in the affirmative and against the Revenue.
Issues: The issues involved the justification for registration of conveyance deed and the assessment of income from letting out the Service Corporation, Guindy.
Ratio Decidendi: The court relied on the decision in CIT v. Tamil Nadu Small Industries Development Corporation Ltd. to support its findings.
Final Decision: Both questions were answered in the affirmative and against the Revenue, with no order as to costs.
VENKATASWAMI J.
At the instance of the Revenue, the following questions have been referred by the Tribunal to this court, for its decision
"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that registration of conveyance deed, transferring certain buildings, plant and machinery by the Government to the assessee is not required and depreciation claimed should be granted ? and
2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the income from letting out the Service Corporation, Guindy, should be assessed as income from property and that the assessee is entitled to the allowance at 1/6th of the annual letting value towards repairs especially when the assessee is not the owner of the building transferred by the Government ?"*
It is fairly stated by learned counsel appearing for the Revenue that the decision in CIT v. Tamil Nadu Small Industries Development Corporation Ltd., squarely applies to the facts of this case, and on the basis of the said decision, both the above questions have to be answered against the Revenue and in the affirmative, and accordingly, we answer both the questions referred to above, in the affirmative and against the Revenue. However, there will be no order as to costs.
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