- (1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, the Tribunal, Jaipur has referred the following question for our opinion. "Whether, on the facts and circumstances of the case, the Tribunal was right in treating the hotel building and various fittings and equipments installed therein as 'Plant' for the purpose of allowing depreciation and investment allowance ?"
(2.) THE assessee runs the Hotel Man Singh and claimed depreciation at the rate applicable in the case of 'Plant' as the hotel building is a 'Plant' that has been negatived by the AO. In appeals before the CIT(A) and the Tribunal, Jaipur, the CIT(A) as well as the Tribunal have allowed the claim of the assessee and allowed the depreciation at the rate of 15 per cent treating the hotel building as a 'Plant'. None puts in appearance on behalf of the assessee.
(3.) LEARNED counsel for the Revenue has brought to our notice the decision of the apex Court, in the case of CIT vs. Anand Theatres (2000) 160 CTR (SC) 492 : (2000) 244 ITR 192 (SC), wherein Their Lordships have taken the view that the theatre building and the hotel building specially designed or equipped for the purposes of business cannot be treated as a 'Plant'. Learned counsel for the Revenue, also brought to our notice the decision in the case of Indian Hotels Co. Ltd. & Ors. vs. ITO & Ors. (2000) 162 CTR (SC) 310 : (2000) 245 ITR 538 (SC) wherein. Their Lordships have also considered and have taken the view that by manufacture or processing of food packets, the hotel cannot be called as an "industrial undertaking". Their Lordships negatived the claim holding that the assessee is not entitled for special deduction as manufacturer;