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TMI Blog1997 (5) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Appellate Tribunal referred the following question for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in allowing depreciation for the first time in the assessment year 1971-72 on account of notional addition of Rs. 12,970 made in the assessment years 1965-66 and 1966-67 ?" The case relates to the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this fee. I, therefore, do not agree with the learned representative that depreciation should be allowed on this amount as well. This amount was not represented by the addition of any plant and machinery. It was payment of merely a fee and depreciation cannot be allowed on payment of fee though the fee may be capital in nature. Depreciation can only be allowed on plant and machinery and in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65-66 and 1966-67 or that it cannot be allowed in the year under appeal because the expenditure had been incurred in the earlier years." Section 32 of the Act relates to depreciation allowable in respect of buildings, machinery, plant or furniture owned by an assessee and used for the purposes of the business or profession. The question for consideration is whether depreciation is allowable on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its cost while computing taxable profits if it can be brought under the heading ' Plant '. Hence, the word ' plant ' when it is construed liberally, includes within its meaning such designs and blue-prints also." We, agreeing with the view taken and the reasoning given by the Karnataka High Court and following that decision, hold that the Appellate Tribunal rightly held that depreciation claime ..... X X X X Extracts X X X X X X X X Extracts X X X X
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