2006 (12) TMI 80

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.... tax case appeals are directed against the common order of the Income-tax Appellate Tribunal in ITA.Nos.433 and 434/Mds/2003, dated 25.11.2005. 2. The Revenue is the appellant.  The assessment years involved are 1998-99 and 1999-2000.  The assessee, who is a medical practitioner, constructed a nursing home during the period February 1996 to October 1998.  On a survey conducted by....

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....5 lakhs.  On further appeal by the assessee, the Income-tax Appellate Tribunal, placing reliance on the decision of the Apex Court in CIT v. Dr. B. Venkata Rao [(2000) 243 I.T.R. 81], held that the cost of construction of the nursing home is entitled for depreciation on the ground that it is a plant.  4. Aggrieved by the said decision of the Tribunal, the Revenue has preferred the pre....

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....y the Allahabad High Court in S.K. Tulsi and Sons v. CIT [(1991) 187 I.T.R. 685], affirmed the view of the Karnataka High Court in the assessee's case reported in [(1993) 202 I.T.R. 303] and dismissed the appeal filed by the Revenue by holding as follows:- "... it was clear from the order of the Tribunal as also the assessment order that the assessee's nursing home was equipped to enable the st....

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....tutes an apparatus or a tool of the taxpayer by means of which the business activities are carried on, it would amount to "plant" but where the structure plays no part in the carrying on of those activities but merely constitutes a place within which they are carried on, the building cannot be regarded as a plant." 7.  Admittedly, in the instant case, the assessing officer and the Commissi....