Cinema theatre is not plant for depreciation or extra shift allowance under the Income-tax Act, 1961

A cinema theatre is treated as premises, not as plant, for depreciation and extra shift allowance under the Income-tax Act, 1961. Applying the controlling rule in Anand Theatres, the Court held that the theatre did not fall within the meaning of plant under sections 32, 43(3) and 33, so the assessee was not entitled to claim depreciation or extra shift allowance on that basis.

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Issues: Whether a cinema theatre is a plant entitled to depreciation and extra shift allowance under the Income-tax Act, 1961.

Analysis: The question had earlier been answered by the High Court in favour of the assessee, but the controlling position was thereafter settled by the Supreme Court in Anand Theatres. It was held that theatres are premises and not plant for the purposes of depreciation and extra shift allowance under sections 32, 43(3) and 33 of the Income-tax Act, 1961.

Conclusion: The cinema theatre is not a plant and is not entitled to depreciation or extra shift allowance as a plant; the answer is against the assessee and in favour of the Revenue.

Final Conclusion: The appeal succeeds and the High Court's contrary answer is set aside.

Ratio Decidendi: A cinema theatre, being a premises and not an apparatus or plant, does not qualify as plant for depreciation and extra shift allowance under the Income-tax Act, 1961.

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