1990 (9) TMI 68

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.... -Under section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the cinema building and the tube lights together with fittings do not constitute plant within the meaning of section 43(3) of the Income-tax Act, 1961, an....

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....son for which the Tribunal held that the cinema with the fittings and fixtures does not constitute "plant" is that, according to the provisions of the Cinematograph Act, 1952, and the Cinematograph Rules, a permanent building is not necessary for carrying on cinema business. On this basis, the Tribunal held that the building is not an integral part of the business asset. Accordingly, it held that ....

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....tes an apparatus or a tool of the taxpayer by means of which the business 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. Following the principle of the said decision, it must be held that the building constr....