- (1.) ON an application under section 256(1) of the IT Act, 1961, the Tribunal has referred the following question for the opinion of this Court : 'Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the hotel building and also various fittings such as sanitary fittings, electricity fittings, etc. were all part of the plant and, therefore, depreciation was allowable on these assets at the rate applicable to the plant?'
(2.) FOR the asst. yrs. 1984 -85 and 1985 -86, the assessee which is a limited company running hotels at Jaipur, had claimed that the hotel building be treated as a plant and various fittings such as sanitary fittings, electric fittings, etc. also be considered part of the plant and depreciation should be allowed as is permissible on plant. The ITO has rejected the claim of the assessee but CIT(A) has accepted the appeal of the assessee. The Tribunal has also affirmed the view taken by CIT(A). Counsel for the respondent pleads no instruction. At the outset, counsel for the Department Mr. Singhi submits that whether hotel building is a plant or not for the purpose of depreciation, that issue has been considered by the apex Court in CIT v. Anand Theatres : [2000]244ITR192(SC) , wherein their Lordships have taken the view that building is not a plant for the purpose of depreciation and their Lordships have answered the question in favour of the Revenue and against the assessee holding that building which is used as a hotel or a cinema theatre cannot be given depreciation as permissible in case of 'plant'.
(3.) MR . Singhi has also brought to our notice that the issue whether sanitary fittings such as electric fittings and installation of call bell, etc. can be treated as part of the plant, that issue has been considered by the Bombay High Court in the case of CIT v. Hoechst Dyes and Chemicals (P) Ltd. : [1999]240ITR1(Bom) , wherein the Bombay High Court has taken the view that the electric fittings and installation of call bell, indicators, etc. could not be construed as 'plant'.;