Wooden crates and bottles used in bottling operations treated as plant, defeating any reference on a question of law.

Wooden shells and crates/bottles used in bottling operations were treated as plant for depreciation purposes under the Income-tax Act, rather than as mere stock-in-trade packing materials. The reasoning of an earlier High Court decision on the same issue was followed, and the Tribunal's view was upheld as correct. On that basis, no referable question of law was found to arise, and the reference application under section 256(2) was rejected.

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Issues: Whether wooden shells and crates/bottles used in the bottling business are plant within the meaning of section 43(3) of the Income-tax Act, 1961, or constitute stock-in-trade packing materials, so as to justify a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The assessee used the wooden shells and crates/bottles in the course of its bottling operations and claimed depreciation on them as plant. The view taken by the Andhra Pradesh High Court in an earlier case on the same question was accepted on merits, and the reasoning therein was followed. On that basis, the Tribunal's decision was treated as correct and no referable question of law was found to arise.

Conclusion: The items were treated as plant and not as mere stock-in-trade packing materials, and the application for reference was rejected.

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