1979 (11) TMI 173

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....der s. 154 of the Act. The assessee runs a cinema and claimed depreciation at 20 per cent on the assets of the cinema treating them as plant. The assessment was completed on the total income of Rs. 19,000 after considering depreciation. The ITO thereafter came to the conclusion that the depreciation claimed and allowed at 20 per cent on the various assets was incorrect. He took action under s. 154....

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....ch was filled with wood panelling, plaster of paris and false ceiling with thermocooler and sound proof devices to provide comfort and convenience to the cinema goers and to attract more people to earn more profit and so the building of cinema hall should be treated as a plant. Since the building was to be treated as a plant, the depreciation on the building at 20 per cent as claimed by the assess....

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....vacated. Shri Dayal, departmental representative, very strongly supported the order of the AAC and urged that the assessee was allowed excessive depreciation which was corrected by the ITO under s. 154 of the Act. There was a mistake in the order of the ITO and, therefore, the order passed by the ITO should be maintained. 3. The assessee owns a cinema and claimed depreciation at 20 per cent on ....