2000 (8) TMI 12 - HC - Income Tax

Depreciation - Whether the wooden shells and crates/bottles are plant rather than a part of stock-in-trade of packing materials? - The stand of the assessee was that the above items are plant within the meaning of section 43(3). A similar question came up before the Andhra Pradesh High Court in CIT v. Sri Krishna Bottlers P. Ltd.. 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 also dismissed Thus held that wooden shells and crates/bottles are plant rather than a part of stock-in-trade of packing materials entitled for deduction

Summary

The High Court of Allahabad rejected an application under section 256(2) of the Income-tax Act, 1961 regarding whether wooden shells and crates/bottles are considered plant rather than part of stock-in-trade of packing materials. The court agreed with the decision of the Andhra Pradesh High Court that these items are considered plant for depreciation claims. The application was rejected as the court found the Tribunal's decision to be correct.