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Issues:
1. Depreciation rate on building used as cold storage chamber. 2. Inclusion of building within the definition of plant for depreciation purposes. Analysis: 1. The first issue pertains to the depreciation rate on the building used as a cold storage chamber. The assessee claimed depreciation at a rate of 15%, while the AO allowed it at 10%. The CIT(A) sided with the assessee, and the Tribunal upheld this decision. The Tribunal referred the question of law to the High Court, which held that a cold storage falls within the definition of plant under section 43(3) of the IT Act, as established in various High Court decisions. The High Court cited the case of CIT vs. Kanodia Cold Storage, where it was ruled that a building used as a freezing chamber in a cold storage is part of the air-conditioning plant and is entitled to special depreciation at 15% on its written down value. Similar views were expressed by other High Courts, such as Punjab & Haryana High Court and Allahabad High Court in various cases. Consequently, the first question was answered in favor of the assessee and against the Revenue. 2. The second issue revolves around whether the word "plant" includes buildings where machinery is installed for manufacturing purposes. The High Court opined that a plant cannot exist independently of a building to house it; therefore, the building housing the plant is considered part of the plant. This interpretation was supported by the Allahabad High Court in the Kanodia Cold Storage case. As a result, the High Court answered the second question against the Revenue and in favor of the assessee. In conclusion, both questions of law were resolved in favor of the assessee, emphasizing the inclusive definition of plant to encompass buildings used for specific purposes like cold storage chambers and machinery installations.
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