Income‑tax‑‑‑

‑‑‑‑Depreciation‑‑‑Rate of depreciation‑‑‑Plant‑‑‑Theatre building constitutes plant‑‑‑Entitled to higher rate of depreciation‑‑‑Indian Income Tax Act, 1961, S.32.

A theatre building can be considered to be "plant" and is entitled to the higher rate of depreciation.

CIT v. Hotel Luciya (1998) 231 ITR 492 (Ker.) fol.

P.K.R. Menon and N.R.K. Nair for the Commissioner.

Pathrose Mathai for the Assessee.

JUDGMENT

OM PRAKASH. C.J.‑‑‑ At the instance of the Revenue, the Income‑tax Appellate Tribunal (Cochin Bench) referred the following questions, relating to the assessment year 1986‑87 under section 256(1) of the Income Tax Act, 1961, for the opinion of this Court:‑‑

"(1) Whether, on the facts and in the circumstances of the case, the theatre building can be considered as a plant?

(2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to higher rate of depreciation on the theatre?"

Similar questions came up for our consideration in I.T.R. Nos.44 of 1994, 54 and 55 of 1995 (CIT v. Hotel Lunciya (1998) 231 ITR 492 (Ker:) (FB)) by reference made by a Division Bench, in which by a judgment, dated March 11, 1998, we have answered the aforementioned questions in the affirmative. Following the said Full Bench decision, we answer both the abovementioned questions in the affirmative, that is, in favour of the assessee and against the Revenue.

M.B.A./556/FC

Reference answered.