2012 (5) TMI 168

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....as right in law in holding that a sum of Rs.47,13,112/- as a bad debt for the period under consideration, the assessee is entitled to the bad debt written off as allowable, even though the same was hit by the provisions of Section 36(1)(viia) of the Income Tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee is entitled to the depreciation on electrical fittings and typewriters etc., on plant and machinery and granted relief, even after the assessment year 1987-88 the plant and machinery and furniture and electrical fittings are classified separately for the purpose of depreciation?"   2. As far as the first question is concerned, learned Standing ....

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....escribes the rate of depreciation. In Clause II of Part A, rate of depreciation is given in respect of furniture and fittings. The said table reads as under: Block of assets Depreciation allowance as percentage of written down value II. FURNITURE AND FITTINGS (1) Rate applicable to furniture and fittings not covered by sub-item (2) below10 (2) Furniture and fittings used in hotels, restaurants and boarding houses; schools, colleges and other educational institutions; libraries; welfare centres; meeting halls; cinema houses; theatres and circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions 15 6. Given the fact that the furniture and fittings are with reference to th....

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....ite and specific a result. " Thus the Apex Court considered the meaning of the word 'machinery' and pointed out that the word is not a technical term and in the absence of any definition under the Act, ordinary meaning would prevail. Indeed Rule 8 of the Income Tax Rules treats aero-engines separately from aircraft, but this cannot be used to interpret the clauses in the Act that what was purchased and installed was machinery and after installation, a wider meaning has to be given to the said term.   8. In the decision reported in (2000) 244 ITR 192 (Commissioner of Income Tax Vs. Anand Theatres), the Apex Court applied this principle in construing whether the hotel premises could be considered as a plant.   9. As far as ....