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TMI Blog1986 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... dt.22nd June, 1984and14th Nov., 1984respectively. 2. The first common issues that we have to determine in these appeals is whether the facts and in the circumstances of the case, the ld. CIT (A) erred in not allowing depreciation at higher rate of depreciation applicable to a plant as claimed by the assessee. On this issues, we have heard the parties, given careful consideration to their submissions and also carefully perused the relevant authorities cited. We are absolutely convinced that the authorities below erred in rejecting the claim of the assessee for allowance of depreciation at higher rates on hotel building treating it as plant. The assessee, therefore is entitled to succeed on this issue, for each year, for the following reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncept of "plant" was not necessarily confined to an apparatus which was used for mechanical operations or process or was employed in mechanical or industrial business. These observations were made by the Court in the case of Scientific Engg. House Pvt. Ltd. vs. CIT Andhra Pradesh (1985) 49 CTR (SC) 386: (1986) 157 ITR 86 (SC). It is also equally well settled now that the intention of the legislature was to give the word "plant" a wide meaning as pointed out by the Hon ble Supreme Court in the case of CIT vs. Taj Mahal Hotel 1973 CTR (SC) 480 : (1971) 82 ITR 44 (SC). The Court has further pointed out in the said case that IT Rules are meant only for the purpose of carrying out the provisions of the Act and they cannot take away what it conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing carried on. But then that should not deter us from determining whether such a building would be entitled to higher rates of depreciation for its use and occupation in the manner befitting the running of a hotel. We have also to bear in mind the principles laid down by the Supreme Court that the intention of the legislature was to give the word "Plant" a wide meaning and rules cannot be taken as to whittling down the effect of such a provision. Therefore, it cannot be said that rules of depreciation provided for the ordinary building could only be applied to a hotel building. 8. It has been submitted on behalf of the Revenue before that there is a clear indication in rules and the relevant provisions of law that rates prescribed for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ". 9. When we examine the claim of the assessee in the light of the above, there is no doubt that the hotel building with its furniture and fittings as a whole constitutes a plant, a tool of trade of the assessee. However, before us there is no other point except a claim projected on behalf of the assessee that in so far as the hotel building is concerned, rate of depreciation at 10 per cent be allowed. In our considered opinion, this rate is applicable and allowable in respect of the said building. This claim of the assessee is therefore, accepted and the orders of authorities below on this issue are set aside with the directions to the ITO to allow the deprecation at the above rates on the hotel building while recomputing the total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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