1985 (6) TMI 24

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....n holding that the assessee is entitled to initial depreciation under section 32(1)(iv) of the I.T. Act, on the cost of the co-operative stores building ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee was entitled to depreciation allowance on the cost of preparation and reproduction of drawings, specifications and other technical information paid to the foreign collaborator, on the basis that they are plant within the meaning of section 32 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in disallowing the assessee's claim for deduction of Rs. 27,64,811 relating to the earth-mover division on amortisation basis ....

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....fall under s. 32(1)(iv) of the Act. But on an appeal filed by the assessee, the Tribunal has accepted the same and has allowed it as an admissible depreciation allowance, the correctness of which is disputed by the Revenue. Sri K. Srinivasan, learned senior standing counsel appearing for the Revenue, contends that on the plain language of s. 32(1)(iv) of the Act, " co-operative stores " cannot be treated as a " canteen " for which reason, the initial depreciation claimed on the construction of the same was inadmissible. Sri K. P. Kumar, learned counsel appearing for the assessee, refuting the contention of Sri Srinivasan sought to support the view expressed by the Tribunal. In accepting the claim of the assessee, the Tribunal, refe....