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TMI Blog2012 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ventually intended to augment utilization of building/factory by providing access thereto - Building includes roads laid in the proximity of factory for the purpose of providing access to factory and other buildings within compound and they are entitled to depreciation - D.B. IT REFERENCE NO. 12 OF 1984 - - - Dated:- 28-10-2010 - JAGDISH BHALLA, MOHAMMAD RAFIQ, JJ. Anuroop Singhi and J.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re incurred on construction of approach road to factory was not a revenue expenditure. CIT (Appeals) concurred with decision of I.T.O. and held that approach road could not be said to be a part of factory owned by assessee and no depreciation was admissible thereon. Before the ITAT, assessee did not press claim as revenue expenditure, however, alternative ground for seeking depreciation thereon wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee despite service of notice. 4. Shri Anuroop Singhi has argued that assessing officer was fully justified in recording a finding that expenditure incurred by assessee on construction of road was not revenue expenditure and he therefore rightly disallowed depreciation on such expenditure incurred on construction of road. It was argued that approach road cannot be taken as part of building o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory premises should be treated as part of building and depreciation thereon be allowed. In Hukamchand Mills Ltd. v. CIT [1978] 114 ITR 870 (Bom.) also the roads laid out within factory premises were regarded as part of factory buildings and were entitled to depreciation. In the case of CIT v. Lucas T.V.S. Ltd. [1977] 110 ITR 346 (Mad.) the word 'building' was held to include roads lai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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