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TMI Blog2002 (8) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... J. -The instant reference under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue is referred by the Income-tax Appellate Tribunal, Jaipur, for seeking opinion of this court on the following question: "Whether the Tribunal was right in treating sanitary fittings as plant installed in the cinema hall on the analogy of the Supreme Court's decision in CIT v. Taj Mahal Hotel [1971] 82 ITR 44?" The reference is required to be considered in the background of specific provision granting depreciation to building, machinery and plant under section 32 of the Income-tax Act, 1961, and the decision of the apex court in CIT v. Taj Mahal Hotel [1971] 82 ITR 44. The respondent-assessee, Jodhan Real Estate Development Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said decision has no application to the facts of the case. On the other hand, it is submitted by Mr. Rajendra Mehta, learned counsel for the respondent-assessee, that even after the amendment the apex court in CIT v. Anand Theatres [2000] 244 ITR 192 has approved its earlier decision in Taj Mahal Hotel's case [1971] 82 ITR 44. It is submitted that the controversy involved is concluded by the said decision of the apex court. A Division Bench of this court in CIT v. Lake Palace Hotels and Motels P. Ltd. [1997] 226 ITR 561 considered the question whether the building which is used as a hotel or cinema hall can be considered to be apparatus or tool for running the business so that it can be termed as plant and depreciation can be allowed ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial hotel where visitors come and stay and where there is arrangement for meals and other amenities are provided for their comfort and convenience. To have sanitary fittings, etc., in a bathroom is one of the essential amenities or conveniences which are normally provided in any good hotel, in the present times. If the partitions in Jarrold's case [1963] 1 WLR 214 (CA) could be treated as having been used for the purpose of the business of the trader, it is incomprehensible how sanitary fittings can be said to have no connection with business of the hotelier. He can reasonably expect to get more custom and earn larger profit by charging higher rates for the use of rooms if the bathrooms have sanitary fittings and similar amenities. We are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hal Hotel [1971] 82 ITR 44, this court has observed that the business of a hotelier is carried on by adapting building or premises in a suitable way, meaning thereby building for a hotel is not apparatus or adjunct for running of a hotel. The court did not proceed to hold that a building in which the hotel was run was itself a plant, otherwise the court would not have gone into the question whether the sanitary fittings used in bathroom was plant." The apex court in Anand Theatres' case [2000] 244 ITR 192 has also approved the view taken by this court in Lake Palace Hotels and Motels case [1997] 226 ITR 561. The court observed that the Rajasthan High Court has rightly held that simply because some special fittings or controlling equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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