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TMI Blog2003 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. - - - - - Dated:- 13-10-2003 - Judge(s) : RAJESH BALIA., SUNIL KUMAR GARG. JUDGMENT The judgment of the court was delivered by Rajesh Balia J.-In the facts and circumstances of the case, the preparation of the paper book is dispensed with and at the request of learned counsel for the parries, we have heard learned counsel for the parties on the merits. On the reference under section 256(1) the following common question of law arising out of the Tribunal's order in two appeals relating to the assessment years 1985-86 and 1986-87 has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is legally justified in allowing benefit of depreciation, extra-shift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding may be designed and constructed to suit the requirement of a particular industry, trade or business. But that would not make such building plant. It only shelters running of such business. For each and every business, trade or industry, a building is required to carry on such activity. That means the building plays some role and in other words, its function is to shelter the business, but it has no other function except in some rare cases such as dry dock where it plays an essential part in the operations which take place in getting a ship into the dock, holding it securely and then returning it to the river. Building is more durable. If the contention of the assessee is accepted, virtually all such buildings would be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f land is entitled to depreciation under the Schedule to the Income-tax Act along with the cost of the building standing thereon? The court observed thus: 'It would be noticed that the word used is "depreciation" and "depreciation" means: "a decrease in value of property through wear, deterioration or obsolescence; the allowance made for this in book-keeping accounting etc." (Webster's New World Dictionary). In that sense, land cannot depreciate. The other words to notice are "such buildings". We have noticed that in sub-clauses (iv) and (v), "building" clearly means structures and does not include site.' The court also held that: 'One other consideration is important. The whole object of section 10 is to arrive at the assessable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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