TMI Blog2015 (12) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... uch amendment has been brought. Such amendment brought into the statute by the legislature has not been shown to be violative of constitutional provision. Therefore, according to clear legislative intent the assessee cannot take the benefit of higher depreciation by including building in the value of “plant”. - Decided against assessee. - ITA NO.5O4/MUM/2013(A.Y. 2009-10) - - - Dated:- 1-4-2015 - SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI RAJENDRA , ACCOUNTANT MEMBER For The Appellant by : Shri Rashmikant C. Modi For The Respondent by : Shri Pawan Kumar Beerla ORDER PER I.P.BANSAL, J.M: This is an appeal filed by the assessee and it is directed against order passed by Ld. CIT(A)-39,Mumbai dated 17/12/2012 for assessment year 2009-10. Grounds of appeal read as under: 1. Addition to Plant and Machinery treated as addition to Building and Furniture: On the facts and circumstances of the case, it is submitted that the Hon. Commissioner of Income Tax Appeals, Mumbai erred in treating the additions made to Plant Machinery as additions made to Building and Furniture. The Appellant submits that additions be treated as additions made to Plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.06.08 Raj Enterprises (New) 27198 12.06.08 Raj Enterprises (New) 27005 13.06.08 Aeolus Technovations P Ltd. 1983837 16.06.08 Aeolus Technovations P Ltd. 231293 23.06.08 Aeolus Technovations P Ltd. 467017 02.07.08 Aeolus Technovations P Ltd. 416315 03.07.08 Aeolus Technovations P Ltd. 13854.2 24.07.08 Raj Enterprises (New) 37166 09.08.08 Jawadwalas Constructions P Ltd. 203492 26.08.08 Aeolus Technovations P Ltd. 900005 26.08.08 Aeolus Technovations P Ltd. 512656 26.08.08 Aeolus Technovations P Ltd. 82743 26.08.08 Aeolus Technovations P Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, according to which building and furniture and fittings does not include plant as the same have been excluded by Finance Act 2003 w.e.f. 01/04/2004. The disallowance has been upheld by Ld. CIT(A) on the ground that case law relied upon by the assessee belong to a period prior to amendment brought in section 43(3) of the Act, therefore, would not be applicable to the present case. The assessee is aggrieved, hence, has filed aforementioned grounds of appeal. 3. During the course of hearing Ld. AR did not dispute to the findings of AO according to which these expenses have been incurred on wall partition, fall ceiling, flooring and sliding. But, it is the case of Ld. AR that these work should be treated to be part of plant and machinery as without carrying out these works the assessee could not comply with the standards which are required for manufacturing pharmaceutical items produced by the assessee. Ld. AR also submitted that assessee has also incurred huge expenditure on building which are not included in the plant and machinery . He submitted that at page-52 of the paper book work-in-progress of building is total sum of ₹ 2,13,73,424/-. Thus, it was submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of plant and such amendment was brought by the Finance Act 2003 w.e.f. 2004. Earlier to this, considering the wide scope of the word plant various Courts have rendered decision in favour of assessee where in building required specifically for the purpose of plant was also considered part of plant and machinery . Accordingly, it was held that the said building being integral part of the plant was also in the nature of plant . One of such case is the decision of Hon ble Himachal Pradesh High Court in the case of CIT vs. Shivalik Hatcheries Pvt. Ltd., 188 Taxaman 291(HP), wherein considering the various existing decisions their Lordships have held that if the building has been designed specifically to further cause of manufacture or production, then the same is plant . In the said case poultry sheds, specifically designed to protect the birds from diseases by ensuring proper light and circulation of air, proper scientific feeding arrangement, proper arrangement for collection of manure and droppings, proper arrangement of medication and vaccination and to increase their productivity was considered to be plant within the meaning of unamended section 43(3). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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