2006 (12) TMI 121

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....als are directed against the common order of the Income-tax Appellate Tribunal in I.T.A. Nos. 433 and 434/Mds/2003, dated November 25, 2005. The Revenue is the appellant. The assessment years involved are 1998-99 and 1999-2000. The assessee, who is a medical practitioner, constructed a nursing home during the period February, 1996, to October, 1998. On a survey conducted by the Income-tax Depar....

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....ther appeal by the assessee, the Income-tax Appellate Tribunal, placing reliance on the decision of the apex court in CIT v. Dr. B. Venkata Rao [2000] 243 ITR 81, held that the cost of construction of the nursing home is entitled for depreciation on the ground that it is a plant. Aggrieved by the said decision of the Tribunal, the Revenue has preferred the present appeal raising the following s....

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....v. CIT [1991] 187 ITR 685, affirmed the view of the Karnataka High Court in the assessee's case reported in CIT v. Dr. B. Venkata Rao [1993] 202 ITR 303 and dismissed the appeal filed by the Revenue by holding as follows: "It was clear from the order of the Tribunal as also the assessment order that the assessee's nursing home was equipped to enable the sterlisation of surgical instruments and ....

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....iness activities are carried on, it would amount to 'plant' but where the structure plays no part in the carrying on of those activities but merely constitutes a place within which they are carried on, the building cannot be regarded as a plant." Admittedly, in the instant case, the Assessing Officer and the Commissioner as well as the Tribunal observed that the assessee, who is a medical pract....