2002 (2) TMI 23

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.... the Tribunal has referred the following question for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the hotel is an industrial undertaking and, consequently, the assessee is entitled to investment allowance on furniture and electric goods installed therein?" The assessee derives income from running a hote....

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....CIT v. Casino (Pvt.) Ltd. [1973] 91 ITR 289 (Ker), wherein the Madras High Court has taken the view that hotel is a service industry and not an industrial undertaking engaged in the manufacture of articles and things. Even then following the view taken by the Tribunal in the case of Orient Express Co. Pvt. Ltd. v. IAC [1985] 14 ITD 506 (Delhi), the claim of the assessee was allowed. None appear....

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....se of Fariyas Hotels Pvt. Ltd. v. CIT [1995] 211 ITR 390, the decision of the Calcutta High Court in the case of CIT v. S.P. Jaiswal Estates (P.) Ltd. [1992] 196 ITR 179. Sub-clause (iii) of clause (b) of sub-section (2) of section 32A provides that the plant and machinery referred to in sub-section (1) shall be the following which includes any new machinery or plant installed after March 31, 1....

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....the Act. In the language of common parlance it cannot be expected that by running a hotel the assessee should produce any article or thing. When the assessee does not produce any article or thing nor is engaged in construction business, nor is engaged in the business of generating power, in our view the Tribunal has wrongly treated the assessee as an industrial undertaking nor can the hotel bui....