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TMI Blog1995 (12) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the Revenue, the Income-tax Appellate Tribunal, Bombay Bench " A ", Bombay, has referred the following three questions of law to this court for opinion : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to a deduction under section 80J of the Income-tax Act, 1961, on the basis of its average capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sets so long as they continue to be used for scientific research ? " So far as questions Nos. 1 and 3 are concerned, counsel for the parties are agreed that both these questions are covered by the decision of the Supreme Court in favour of the Revenue and the same may be answered accordingly. Question No. 1 is covered by the decision of the Supreme Court in Lohia Machines Ltd. v. Union of India [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal. Dr. Balasubramaniam, learned counsel for the Revenue, submits that the Tribunal committed a manifest error of law in allowing depreciation on the premium paid for the leasehold land. According to counsel, depreciation is allowable under section 32 of the Act only in respect of buildings and not in respect of the land and buildings. He also submits that the value of the land cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in CIT v. Alps Theatre [1967] 65 ITR 377. The controversy before the Supreme Court in the above case was whether the word " building " occurring in section 10(2)(vi) of the Indian Income-tax Act, 1922 (corresponding to section 32 of the present Act), includes land. The Supreme Court categorically said that " building " clearly means structures and does not include site. It was, therefore, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s includible in the cost of the building constructed thereon for allowance of depreciation to the assessee under section 32 of the Act. Question No. 2 is accordingly answered in the negative and in favour of the Revenue. In the result, all the three questions referred to us by the Tribunal in this case are answered in the negative and in favour of the Revenue. In the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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