2002 (10) TMI 82

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.... C.N. RAMACHANDRAN NAIR J.-This appeal filed by the Department is against the order of the Tribunal cancelling the order issued by the Commissioner of Income-tax (Appeals) under section 263 of the Income-tax Act, 1961, disallowing depreciation at the rate applicable to "plant" on the nursing home of the assessee. The Tribunal following the Full Bench decision of this court in CIT v. Hotel Luciya....

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....in the same establishment. In other words, the building may be independent from the plant, and the business activity involved with the plant can be in the building. Of course the decision was rendered in the context of a theatre wherein the Supreme Court held that building also cannot be treated as a plant. We find that the Supreme Court referred to its earlier decision in Dr. B. Venkata Rao's cas....

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....which building has consultation rooms, accommodation for patients, canteen, resting place, etc. This may be the position with regard to the x-ray plant, which is also to be insulated to prevent any kind of pollution and to prevent x-rays escaping outside. Therefore, while the entire building does not constitute plant, some parts of the building may be treated as plant, depending upon its use. It i....