2000 (8) TMI 38

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....er concern. The dispute relates to the assessment year 1987-88. The factual position which is almost undisputed is as follows : The assessee-company supplies bottles to other concerns on lease basis. For the relevant assessment year, depreciation was claimed on the bottles valued at Rs. 14,99,508 at 100 per cent. However, the Assessing Officer allowed depreciation at 15 per cent. under the first proviso to section 32(1)(i) of the Act. For disallowing the assessee's claim of depreciation at 100 per cent., it was observed that though the bottles were plant, each bottle cannot constitute plant and only all the bottles which were acquired can be taken as plant. Reference was made to purchases on several dates to hold that the value of the....

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....ottles purchased on a particular date in bulk. Learned counsel for the Revenue submitted that the question whether a particular bottle would constitute a plant would depend upon the nature of activities carried on by the assessee. In the case at hand, the assessee being a leasing concern, each bottle cannot be construed to be a plant and only the bulk purchases made which were leased out can be treated as plant. Learned counsel for the assessee on the other hand referred the various decisions, more particularly, the decision of this court in CIT v. Prem Nath Monga Bottlers (P.) Ltd. [1997] 226 ITR 864 to contend that each bottle would constitute a plant. So far as the grant of depreciation on assets which are leased out is concerne....