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2004 (10) TMI 84 - HC - Income TaxDepreciation - Business in aquaculture - Prawns are grown in specially designed ponds. According to the assessee, prawn ponds are tools to the business of the assessee and hence the same constitute "plant" eligible for depreciation at the rates applicable to plant and machinery. - In order to keep the water at the required level for the purpose of breeding shrimps or prawns the pond is a must. The breeding of fish cannot be carried on within the ponds. As referred to by the Tribunal, water plays the role of a machine just like a timber merchant. If the timber merchant requires a sawing machine to cut and shape the log such sawing machine constitutes a plant for him. Water in the case of the assessee plays same role. Water has to be stored within the ponds. Therefore, the ponds also constitute part of the machinery in the business of the assessee. Learned counsel for the Revenue submitted that it was only a natural pond. It is not correct. – Held that the pond is a plant and hence, entitled to statutory depreciation.
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