TaxTMI 
TaxTMI 
2004 (7) TMI 41
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.... is right in law in allowing extra shift depreciation allowance on equipment installed in the nursing home premises?" The matter relates to the assessment year 1983-84. The assessee, being a doctor, is running a nursing home under the banner "G.G. Hospital". The assessee for the assessment year 1983-84 claimed extra shift allowance, treating the building of the nursing home as a "plant". The Assessing Officer, considering the activities carried on in the building, concluded that the nursing home could not be treated as an industry or a plant, qualifying for extra shift allowance and in this view, the Assessing Officer disallowed the claim of the assessee, both for equipment and building. On appeal, the Commissioner of Income-tax (Appeals....
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....port of the above contentions, our attention was drawn to a number of decisions. The Tribunal, relying upon a decision in Scientific Engineering House P. Ltd. v. CIT [1986] 157 ITR 86 (SC), came to the conclusion that the assessee's nursing home comes within the definition of "plant", entitling the allowances claimed. The apex court has not given any specific or definite finding, that a building which housed certain machinery, wherein the apparatus are used for mechanical operation, should come within the meaning of the plant, whereas it has given a guideline, how and under what circumstances, a building could be construed as a "plant", which is as follows (headnote): "The test to be applied was : Did the article fulfil the function of a....
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....If this ratio is to be applied straightaway, materials should be available, such as whether the assessee's nursing home is of a special type, coming within the meaning of a "plant", whether the building or structure constituted an apparatus or a tool of the taxpayer by means of which, business activities were carried on, then only defining the building as a "plant", these allowances could be ordered and not otherwise. In the decision in CIT v. Anand Theatres [2000] 244 ITR 192 (SC), which came to be delivered after the second cited decision, the apex court had an occasion to decide, whether theatre building and hotel building specifically equipped for the purposes of business, attract the extra shift allowance and extra shift depreciation ....
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....me passage from the abovesaid rulings at page 82, observed: "This decision is based on the facts found by the Tribunal and the High Court, wherein it was held that the nursing home was equipped to enable sterilisation of surgical instruments and bandages to be carried on and that room covered 250 sq.ft. and hence was a 'plant'. As such, no legal contentions were raised and considered by the court and the matter is decided solely on the facts as quoted above without any discussion. Hence, this decision would not be of any assistance in determining the question involved." Thus, it is seen their Lordships of the apex court have not overruled the ratio laid down in CIT v. Dr. B. Venkata Rao [2000] 243 ITR 81, thereby indicating at least a por....
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....igh Court has also taken a view that if a particular structure was merely helpful for carrying on the activities of the assessee, it might not be plant, but if it was an integral part of the plant and machinery or a portion of that building was an integral part of the plant and machinery, that should be considered. As seen from the facts of the case, that issue had not been considered by the Tribunal, in the light of the decision of the Supreme Court and the result was, the matter was remanded to the Tribunal, to give a specific finding, for the purpose of investment allowance and higher depreciation. We are of the considered opinion, considering the facts and circumstances of the case, the view expressed by the Division Bench of Kerala an....