1993 (7) TMI 6

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....ncome-tax Act, 1961 (" the Act "), the Income-tax Appellate Tribunal has referred the following questions at the instance of the Revenue : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the false ceilings and other accessories costing Rs. 2,65,240 were part of the 'fittings' and consequently in directing the Income-tax Officer to gr....

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....t., on the basis that they were part of the fittings in the theatres. The Income-tax Officer treated them as decorative fixtures and fittings and as a part of the building and granted depreciation only at the rate of 2 1/2. The Appellate Assistant Commissioner confirmed the said order. But, the Tribunal upheld the stand of the assessee. In the auditorium are fixed cozy chairs for the viewers cost....

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....tion 43(3) of the Act. Considering its inclusive nature and the whole context, it has been given wide and liberal meaning by consistent judicial pronouncements made from time to time. The functional test has been held to be the ideal test for interpreting the said word. Cinema theatres have to comply with several laws and regulations including about sitting arrangement for the viewers. The chairs ....