1999 (7) TMI 46

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..... on 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that horses used for stock-breeding constitute 'plant' so as to be eligible for depreciation under section 32 of the Income-tax Act, 1961 ?" This refe .....

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..... . It was contended by the assessee before the Commissioner of Income-tax (Appeals) that the horses were held by it not as stock-in-trade but as fixed assets. The Commissioner of Income-tax (Appeals) rejected the appeal of the assessee. He held that horses did not constitute "plant". On further appeal, the claim of the assessee was accepted by the Income-tax Appellate Tribunal ("the Tribunal"). The .....

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..... now made clear in the definition of "plant" in section 43(3) of the Act that it does not include livestock. In view of the above, horses used for stock-breeding cannot be regarded as "plant" within the meaning of section 43(3) of the Act and no depreciation would be allowable thereon under section 32 of the Act. The question referred to us is, therefore, answered in the negative, that is, in f .....

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