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2022 (9) TMI 1488 - HC - Income TaxDepreciation on oil wells - @10% OR 80% - what constitutes and what is included in "Plant" for the purposes of Section 32 ? - Tribunal confirmed CIT (A) order to hold that oil well was Plant & Machinery as eligible for depreciation as Plant & Machinery Depreciation, @80% as claimed by the assessee - HELD THAT:- All such things and tools which become plant, if they are part and parcel of the plant, functioning would aid an assessee's business activity. In Niko Resources [2016 (7) TMI 1328 - GUJARAT HIGH COURT] it was accordingly held reversing the decision of the Tribunal that the Tribunal was not right in law in treating mineral oil wells as Buildings for the purpose of applying rate of depreciation under Section 32 of the Act. It was held that mineral oil wells constitute "Plant" for the purpose of Section 32 of the Act. ITAT did not erred in law and on facts in allowing the depreciation on oil wells treating the same as Plant and Machinery - No substantial question of law.
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