Commissioner of Income Tax vs S.B. Properties Enterprises Ltd.

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 our opinion :

"Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that the depreciation on building should be allowed at the rate of 15 per cent treating it as a Plant ?"

The relevant assessment year is 1986-87. At the outset, the learned counsel for the assessee submits that now the issue is covered by the decision of Hon''ble Apex Court in the case of Commissioner of Income Tax, Trivandrum Vs. M/s. Anand Theatres, , wherein the Lordships have taken in view that hotel buildings are not plant, therefore, normal depreciation should be allowed on the hotel building, which is permissible for building only.

Following the view taken by their Lordships in the case of Anand Theatres (supra), we answer the question in the negative, i.e., in favour of the revenue and against the assessee.

The reference so made stands disposed of.