TMI Blog1998 (7) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... allowable under section 32(1)(iia) of the Income-tax Act, 1961, in respect of the machinery leased out to approved hotels by the company. The assessee is a leasing company which leased out equipment to its customers, some of whom are hotels. The extra depreciation allowance has been claimed in respect of machinery leased to hotels, solely on the ground that hotels are entitled to such depreciation as the machinery is used in the hotel. This claim of the assessee has been negatived, and rightly so, by the Tribunal. Under the provisions of section 33 of the Income-tax Act such extra depreciation allowance can be claimed in respect of machinery installed and used in a hotel only when it is used by the assessee. The hotel also has to be an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Whether the Tribunal was correct in law and on facts in holding that the assessee would not be disqualified from claiming the investment allowance under section 32A(5) of the Income-tax Act, 1961 ?" We may conveniently dispose of questions Nos. 2 to 5 as the answer to those questions has been settled by the decision of the Supreme Court in CIT v. Shaan Finance (P.) Ltd. [1998] 231 ITR 308. The Supreme Court in that case which also concerns this assessee, held that notwithstanding the fact that the assessee is a leasing company and the plant and machinery leased out by it are not used by the assessee in any industry the assessee is entitled to investment allowance We answer questions Nos. 2 to 5 referred to us at the instance of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court set out at page 650 clearly show that the medical reimbursement was one of the items that was before the court, and that such medical reimbursement had been described along with the allowance as "cash payments". The facts of another appeal which was also before the court and which was also disposed of by the same judgment refer only to allowances. The judgment delivered by the court was on all the appeals, which were heard together. It is not a judgment confined to the civil appeal the facts of which are set out in page 651 of the report. The conclusion of the court was that cash payment paid by the assessee to its employees do not fall within the ambit of section 40(a)(v) or section 40A(5)(a)(ii). The cash payments referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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