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TMI Blog1981 (2) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... on thermocole insulation treating it to be machinery. The AAC during the course of the hearing of the appeal filed by the assessee reduced the depreciation to 5% on both the items treating it to be a godown and as such an ordinary building. Aggrieved thereby, the assessee went in appeal before the Tribunal which restored the order of the ITO holding that the cold storage was a factory building and that the thermocole insulation was covered by the definition of " plant " as defined in s. 43(3) of the I.T. Act. However, on an application by the revenue, the following two questions were referred under s. 256(1) of the Act for the opinion of this court : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal is right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, therefore, is entitled to 15% depreciation on bills of its costs. Question No. 2 is accordingly answered in the affirmative. As regards the first question, the Tribunal did not record any reasons to opine that the cold storage building was a factory building and relied upon its earlier decision in Aggarwal Cold Storage and General Mills v. ITO (1970)Tax XXX (6)10. The word " factory buildings " is not defined in the Act but under the Factories Act, 1948, the word " factory " is defined to mean any premises including the precincts thereof 2. (m)(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which manufacturing process is being carried on with the aid of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing process is involved in a cold storage in the following terms : " Now, what is done in a cold storage ? It is a big hall where a refrigeration plant is installed to circulate cold air at a temperature varying from 340 F to 360 F. This reduction in temperature is achieved by the refrigeration plant and the necessary requirement is that the temperature of the hall should not be less than 340 F and should not be more than 360 F. It is said that a thermostat is also used to control the temperature ......... This brief description of the 'plant' and process is enough to show that it is not a case of ' godown ' as the revenue would have it. It is a case of complicated process of modern science which is yoked for the preservation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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