High Court of
Commissioner of Income-tax
v.
Nirula Corner House Ltd.
MADAN B. LOKUR AND
DR. S. MURALIDHAR, JJ.
IT APPEAL Nos. 826, 827 & 828 OF 2006
December 6, 2007
Section 32, read with sections 32A, of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Assessment years 1986-87, 1987-88 and 1989-90 - Assessee-company, which was running a hotel and restaurant, claimed depreciation and investment allowance under sections 32 and 32A respectively in respect of a bulk kitchen built by it - Assessing Officer disallowed said claim on ground that bulk kitchen was not a plant Tribunal upheld order of Commissioner (Appeals) – Whether Tribunal was justified – Held – yes – Commissioner (Appeals) following its earlier order held that entire building could not be said to be plant but that cold rooms which was an integral part of the plant (kitchen) since they were essential to manufacturing process of ice creams; cold room, was approximately 19.90 per cent of total plant was in nature of plant and machinery and accordingly directed Assessing Officer to grant depreciation and investment allowance on amount spent on cold rooms
In view of the conclusion that the cold room in the facts of the case was a plant, the question concerning the allowability of the depreciation and investment allowance thereon need not depend on the answer to the question whether the entire bulk kitchen could be considered to be an industrial undertaking for the purposes of section 80-I.