2001 (9) TMI 79

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....red by P. K. BALASUBRAMANYAN J. -This appeal is by the Revenue. For the assessment year 1988-89, the assessee, which is a firm running a theatre, claimed depreciation on the theatre at the rate applicable to "plant". The Assessing Officer rejected that claim and allowed depreciation on the basis that the theatre building was only a building. On appeal by the assessee, the Commissioner of Income....

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.... rate of depreciation. The Tribunal allowed that petition and upheld the plea of the Revenue. In the meanwhile, a Full Bench of this court in I. T. R. Nos. 54 and 55 of 1995 (CIT v. Hotel Luciya [1998] 231 ITR 492) held that the depreciation was to be allowed at special and higher rate in respect of the theatre building. The Tribunal thereupon allowed a petition by the assessee and upheld the p....

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.... should be considered as a plant, entitled to higher percentage of depreciation. It is brought to our notice that the Supreme Court in the decision in CIT v. Anand Theatres [2000] 244 ITR 192, has held that a theatre building is not a plant and the higher percentage of depreciation applicable to plant is not available in respect of the theatre building. In the light of this position settled by the....