- (1.) ON an application filed under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following questions for the opinion of this Court : "Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in directing to allow depreciation to the assessee on hotel building at the rate applicable to plant and machinery ?" "Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in directing to allow extra-shift allowance on the hotel building including other plant and machinery of the hotel as the hotel is supposed to be running for 24 hours a day ?"
(2.) THE assessee is a private limited company and runs a hotel. The AO had allowed depreciation at the rate of 5 per cent. The assessee claimed the depreciation at the rate of 10 per cent claiming that hotel building is part of plant. AO has negatived the claim of the assessee. In appeal before CIT(A), CIT(A) has also confirmed the view taken by AO. In appeal before the Tribunal, the Tribunal has allowed the claim of the assessee holding that hotel building is part of plant and machinery and if hotel runs 24 hours a day, the hotel building is entitled for extra-shift allowance. None appeared for the assessee. Heard learned counsel for the Revenue Mr. Singhi. Learned counsel for the Revenue Mr. Singhi submits that whether hotel building is a plant or part of the plant, that has been concluded by their Lordships in the case of CIT vs. Anand Theatres (2000) 160 CTR 492 (SC) : (2000) 244 ITR (SC) 192, wherein their Lordships held that theatre building and hotel building are not part of plant and depreciation cannot be allowed to the hotel building or the theatre building as permissible in the case of plant and machinery.
(3.) MR . Singhi further submits that this Court in the case of CIT vs. Lake Palace Hotels and Motels (P) Ltd. (1996) 130 CTR (Raj) 585 : (1997) 226 ITR 561 (Raj) has held that in case of hotel building or any hotel business, assessee is not entitled for extra-shift allowance.;