Cinema building treated as plant for depreciation because it functioned as the core apparatus of film exhibition.

A cinema building specially designed for film exhibition was treated as plant because it functioned as the basic apparatus of the business, not as a mere premises where activity occurred. The building was considered integral to housing the audience and enabling screening and exhibition of films, making it distinct from an ordinary commercial building. On that basis, depreciation was allowed at the rate applicable to plant in favour of the assessee.

---

---

Issues: Whether the cinema building was to be treated as a plant for the purpose of depreciation.

Analysis: The building was held to be specially designed for the business of exhibition of films and to function as the basic apparatus through which that business was carried on. It was considered distinct from an ordinary building because it was used as an integral tool for housing the audience and for screening and exhibition of films, and not merely as a place where the activity occurred.

Conclusion: The cinema building was treated as a plant and depreciation was allowable at the rate applicable to a plant, in favour of the assessee.

---