1990 (9) TMI 68

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Tribunal has referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the cinema building and the tube lights together with fittings do not constitute plant within the meaning of section 43(3) of the Income-tax Act, 1961, and, consequently, the assessee was not entitled to develo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fittings and fixtures does not constitute "plant" is that, according to the provisions of the Cinematograph Act, 1952, and the Cinematograph Rules, a permanent building is not necessary for carrying on cinema business. On this basis, the Tribunal held that the building is not an integral part of the business asset. Accordingly, it held that the permanent building required for running a cinema cann .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ch the business activities are carried on, it would amount to "plant" but where the structure plays no part in the carrying on of those activities but merely constitutes a place within which they are carried on, the building cannot be regarded as a plant. Following the principle of the said decision, it must be held that the building constructed and used as a cinema and wherein the cinema business .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X