9911796707
TMI Blog1992 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Tribunal was right in holding that radar was a wireless equipment and thus not entitled to extra shift allowance ?" At the instance of the Department : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in confirming the order of the Commissioner of Income-tax (Appeals) allowing provision for accrued leave salary amounting to Rs. 2,37,66,620 as a deduction for the assessment year 1981-82 ?" The assessee had claimed that bins, racks and shelves were "plant" and as such extra shift allowance was admissible on them. The Income tax Officer was of the opinion that these bins, racks and shelves were "furniture" and not "plant" as claimed by the assessee and hence the question of al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at, if certain items fall under the head "furniture", they are entitled only to the percentage of depreciation admissible for furniture, and it is immaterial whether the furniture is used as a tool of the trade. The Tribunal has further observed that, in the instant case, even though it could be described as "plant" in the sense that it is a tool of the trade, since the special description of furniture would fit in with the description of the asset, that special provision will be applicable to it and not the general provision with regard to the plant it is further held that the articles are merely used in storing the components which are assembled together to manufacture machines later. The role of the bins and shelves is passive as they me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... test would be : Does the article fulfil the function of a plant in the assessee's trading activity ? Is it a tool of his trade with which he carries on his business ? If the answer is in the affirmative, it will be a plant. "Plant" (among other things) has been held to include loose tools and implements, electric fittings and installations, ceiling and pedestal fans, office appliances, internal telephone system, air-conditioning equipment, the freezing chamber in which such equipment is located, thermocole or fibreglass insulation in a cold storage, safe deposit vaults and even wells. In Income-tax Reference No. 196 of 1987, dated June 3, 1991 CIT v. Dr. B. Venkata Rao [1993] 202 ITR 303 (Kar), the question whether the operation theatre ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
