https://www.taxtmi.com/caselaws?id=17758 The Rajasthan HC held that hotel and cinema buildings cannot be treated as plant for depreciation purposes under section 32 of the Income-tax Act. The court applied the functional test and determined that buildings remain buildings despite decorative features or special specifications. Hotel buildings serve as settings rather than tools of trade, and cinema buildings accommodate viewers regardless of air-conditioning or special design. The court emphasized that buildings have separate depreciation provisions and cannot be reclassified as plant merely due to their commercial use. The reference was answered in favor of the Revenue against the assessee. en-us Tue, 14 Nov 1995 00:00:00 +0530 Wed, 12 Feb 2025 15:06:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17758 The Rajasthan HC held that hotel and cinema buildings cannot be treated as plant for depreciation purposes under section 32 of the Income-tax Act. The court applied the functional test and determined that buildings remain buildings despite decorative features or special specifications. Hotel buildings serve as settings rather than tools of trade, and cinema buildings accommodate viewers regardless of air-conditioning or special design. The court emphasized that buildings have separate depreciation provisions and cannot be reclassified as plant merely due to their commercial use. The reference was answered in favor of the Revenue against the assessee. Case-Laws Income Tax Tue, 14 Nov 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17758