2001 (9) TMI 58

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.... of the Tribunal's view is questioned by the assessee in this reference before us. Learned senior counsel contended that once the electrical installations are embedded in the building and the sanitary fittings are fitted on to the bath rooms attached to the hotel rooms, they become part of the building and, therefore, higher initial depreciation provided for under section 32(1)(v) of the Income-tax Act, 1961, hereinafter referred to as "the Act", as it stood during the assessment year, should have been allowed in respect of those fittings as well. It was submitted that the Supreme Court in the case of CIT v. Taj Mahal Hotel [1971] 82 ITR 44, 49 has recognised such fittings as capable of being regarded as "plant" for the purpose of develo....

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.... the context of the facts that the claim was made by an assessee carrying on the business of running a hotel and the items in respect of which the claim was made for development rebate were items which were used in the building in which the hotel was run. If the building itself was to be regarded as plant, it would have been unnecessary for the court to proceed further to examine as to whether the sanitary and pipeline fittings which are essential for the hotel building to constitute plant. The court did not hold that the building in which a hotel was run was a plant. It was only held that the sanitary fittings were one of the essential amenities which are normally Provided in any good hotel and such fittings, having regard to the wide mean....