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2018 (5) TMI 1948 - AT - Income TaxDisallowance of Depreciation on premises owned by it and used for the residence of the Director - Board s letter F. No. 9/26/IT/60 dated the 21st March 1960 - HELD THAT - The said flat was owned by the company. It was used by the directors for residence. The case has also been made out that the assessee company is engaged into share trading and the said premises was also used by directors for official works of the company. The issue is squarely covered in favour of the assessee by the decision of the full bench of Hon ble Delhi High Court in the case of CIT vs. Modi Industries Ltd. 1994 (4) TMI 61 - DELHI HIGH COURT and the CBDT Circular where it was held that the quarters built by the employers for the accommodation of their employees must be regarded as buildings used for the purpose of the business and depreciation allowed thereon where the occupation by the employee of the property owned by the employer is subservient to and necessary for the purpose of their duties. It is considered that what applies to buildings applies also to the fans air-conditioners and refrigerators fitted to those buildings as those are amenities which virtually part of such buildings. The issue is decided in favour of the assessee.
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