TMI Blog2015 (9) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... signed ponds. Further this very contention that these are natural ponds has been specifically rejected as not correct. Moreover, from the order passed by the Assessing Officer we find that this was not the reason given by the Assessing Officer to reject the claim. Therefore, finding of fact on this aspect cannot be gone into at this stage. See Commissioner of Income Tax, Karnataka vs. Karnataka Power Corporation [2000 (7) TMI 72 - SUPREME Court] We find that the judgment dated 14.10.2004 rightly rests this case on 'functional test' and since the ponds were specially designed for rearing/breeding of the prawns, they have to be treated as tools of the business of the assessee and the depreciation was admissible on these ponds. - Decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st both the judgments and the validity of the judgment rendered in the first case is also questioned by the assessee, we have to necessarily decide these appeals on merits, rather than remanding the case back to the High Court to be considered by a larger Bench. Facts in brief are that the assessee is a company doing business of 'Aqua Culture'. It grows prawns in specially designed ponds. In the income tax returns filed by the assessee, the assessee had claimed depreciation in respect of these ponds by raising a plea that these prawn ponds are tools to the business of the assessee and, therefore, they constitute 'plant' within the meaning of Section 32 of the Act. The Assessing Officer disallowed the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il the electricity was led to the transmission tower. The water that was used for rotation of the turbines had to be removed and this was done through the Tail Race Channel. For stepping up the electricity, transformers were used in the outdoor yard. The conduction of the electricity was through conductors held in ducts, called the Cable Duct System, which were specifically designed for the purpose. The case of the assessee, therefore, was that all these were part of the special engineering works that were an essential part of a generating plant and, therefore, it was entitled to have the same treated as a plant for the purposes of investment allowance. The Commissioner accepted the correctness of the assessee's case. He held that it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s used as a hotel or cinema theatre could not be given depreciation on the basis that it was a plant. We must add that the Court said, To differentiate a building for grant of additional depreciation by holding it to be a plant in one case where a building is specially designed and constructed with some special features to attract the customers and the building not so constructed but used for the same purpose, namely, as a hotel or theatre would be unreasonable. This observation is, in our view, limited to buildings that are used for the purposes of hotels or cinema theatres and will not always apply otherwise. The question, basically, is a question of fact, and where it is found as a fact that a building has been so planned and construct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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