1998 (12) TMI 54

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..... assessee was entitled to claim depreciation on roads, culverts, drainage, etc., as plants (except those in residential localities) and not as 'buildings' ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the assessee was entitled to claim development rebate on water supply and library books ?" So far as the first question is concerned, the Tribunal has, following its earlier decision in ITA Nos. 9184 and 9185/Ahd. of 1975-76 for the assessment years 1968-69 and 1969-70, held that roads, culverts and drainage, except those in the residential localities, should be treated as plant and not as buildings for the purpose of depreciation. In the assessee's own case f .....

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..... r price, a provision has been made for allowing the entire cost as deductible expenses of the year in which such assets have been acquired rather than subject them to regular depreciation at fixed percentage. Discussion in this respect finds place in para. 16 of the Tribunal's order, which is reproduced hereinbelow: "The last ground is about the allowance of the development rebate on water supply and library books. The Revenue's argument is that the cost of some of these items have not (sic) been allowed as revenue expenditure being less than Rs. 750, no development rebate was admissible if the cost was zero. We do not agree with this because specific provision has been that instead of allowing depreciation on small items at a percentage .....

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..... investment allowance, by inserting section 32A, a specific provision was made by excluding such plant and machinery the whole of actual cost of which is allowed as deduction whether by way of depreciation or otherwise in computing the income chargeable under the head "Profits and gains from business or profession" from consideration for the purpose of computing investment allowance. The section had been inserted with effect from April 1, 1976, by the Finance Act, 1976. This also makes clear that where the Legislature wanted that any benefit is not to be extended in case where depreciation or whole of the cost has been allowed by way of deduction either by way of depreciation or otherwise, it has made a specific provision about it. For th .....

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