- (1.) Heard learned counsel for the Department and Sri Navin Sinha for the respondent.
(2.) This is an application under Section 256(2) of the Income-tax Act, 1961, in which the following question is sought to be referred to us for our opinion : "Whether the wooden shells and crates/bottles are plant rather than a part of stock-in-trade of packing materials ?"
(3.) The assessee is in the business of bottling of soft drinks and for this purpose it uses wooden shells and crates/bottles on which it claims depreciation. The stand of the assessee was that the above items are plant within the meaning of section 43(3) of the Income-tax Act. A similar question came up before the Andhra Pradesh High Court in CIT v. Sri Krishna Bottlers P. Ltd. [1989] 175 ITR 154. The Andhra Pradesh High Court decided the question in favour of the assessee. Against that decision a S. L. P. was filed before the Supreme Court and the said S. L. P. was dismissed vide [1994] 209 ITR (St.) 85.;