Factory roads classified as building, not plant, for depreciation and development rebate purposes.

Roads constructed within factory premises are not treated as "plant" for depreciation or development rebate purposes. The settled position applied by the Bombay HC is that such internal roads fall within the category of "building", not plant, and depreciation must be allowed accordingly on that basis. The note follows binding authority on the classification issue and confirms that the functional use of the roads within the factory does not alter their treatment as building for tax depreciation purposes.

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Issues: Whether roads constructed within the factory premises are to be treated as "plant" or "building" for the purpose of depreciation and development rebate.

Analysis: The Court applied the settled view that roads laid within factory are not to be treated as plant. The question was answered by following the binding authorities which had held that such roads fall within the category of building for depreciation purposes.

Conclusion: The roads constructed within the factory premises are to be treated as "building" and not "plant" for the purpose of depreciation.

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