Commissioner of Income Tax vs L.M.B. Hotel

On an application filed u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act), the Tribunal has referred the following question for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the hotel building used by the assessee was a ''plant'' and depreciation was admissible treating the hotel building as a ''plant''?"

At the outset the learned counsel for the assessee Mr. Mehta, the learned Advocate General admits that the issue has now been concluded by the Apex Court in the case of Commissioner of Income Tax, Trivandrum Vs. M/s. Anand Theatres, wherein their Lordships held that theatre and hotel buildings specially equipped for purpose of business are not entitled for the depreciation as they are not plant within the meaning of section 43(3) of the Act.

Following the view taken by their Lordships, we answer the question in negative, i.e., in favour of the revenue and against the assessee.

Reference so made stands disposed of accordingly.