Depreciation on vehicles can be claimed by a company even if such vehicles are purchased in the names of its directors:

AO disallowed depreciation on vehicles on the count that the said vehicles were purchased in the name of the directors of the assessee-company. He was of the view that since the ownership of such vehicles did not belong to the company, it was not entitled to depreciation. Hon’ble ITAT observed that the assesse-company had made payments for such vehicles. The said vehicles were recorded in the books of assessee-company and were also used for the purpose of business of the assessee-company. In light of the aforesaid facts, Hon’ble ITAT rightly confirmed the order of CIT(A) allowing depreciation on such vehicles to the assessee-company.

[RASRANJAN FOOD PRODUCTS PVT. LTD. Vs. ITO – ITA No.1794/Ahd/2010 & CO No.188/Ahd/2010]