2003 (9) TMI 5 - HC - Income Tax

Investment allowance and depreciation - Whether Tribunal was right in confirming the view taken by the Commissioner of Income-tax (Appeals) that the assessee s building of massive reinforced concrete structure is an integral part of the plant and machinery and consequently in directing the Income-tax Officer to allow investment allowance and depreciation thereon? - Where a particular structure is merely helpful for carrying on the activities of the assessee may not be a plant but if it is an integral part of the plant and machinery or a portion of that building is an integral part of the plant and machinery that should be considered in the light of the decision of the hon ble apex court in CIT v. Karnataka Power Corporation Matter reemitted to Tribunal

Summary

The High Court of Rajasthan considered whether a reinforced concrete structure is part of plant and machinery for investment allowance and depreciation. The Tribunal's decision was based on earlier orders and upheld by the Court. The Court directed the Tribunal to reevaluate the case in light of the decision in CIT v. Karnataka Power Corporation within three months.