1982 (7) TMI 77

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ures and fittings of " Shirin "/" Alpana " Talkies within the meaning of section 32 of the Income-tax Act, 1961, for the relevant years 1964-65 to 1969-70 ? (2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to depreciation under section 32 of the Income-tax Act, 1961, on the above items ? " The assessee carries on business as an exhibitor of films at Poona. The theatre in which the assessee exhibits films was originally leased out by M/s. Ismail and Babumiyan, both sons of Rasulbhai, to one Homi Meher Mistry, for 20 years with effect from January 1, 1948, by lease deed dated May 30, 1949, at a rental of Rs. 800 per month. Homi Mistry assigned his interest in the said theatre to one Maganlal L. De....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....indenture of lease dated November 21, 1960 ". As it Was felt by us that the two lease deeds dated, November 21, 1960, and March 4, 1965, should be part of the record and were necessary for a proper appreciation of the facts of the case, we have taken on record a compilation filed by the assessee but the only two documents which are now treated as a part of the record are the two lease deeds dated November 21, 1960 and March 4, 1965, annexs. D and E, respectively. The New Shirin Talkies, which was the name of the cinema theatre, was thus completely demolished and a new theatre was constructed during the period January-July, 1962. In respect of the assessment for the assessment years 1964-65 to 1969-70, the assessee-firm claimed depreciati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the land owned by the original lessors. The only person who, therefore, could claim depreciation would be the assessee-firm. Apart from the fact that the position appears to us to be beyond any doubt, we may mention that a similar view has been taken by the Mysore High Court in Y. V. Srinivasamurthy v. CIT [1967] 64 ITR 292. This was the decision on which the Tribunal had relied in coming to the conclusion that the assessee was entitled to claim depreciation in respect of the theatre and the fittings. In the case before the Mysore High Court, the assessee's brother had taken a vacant site on lease for a period of 20 years for the purpose of constructing a building thereon. On the expiry of the lease period of 20 years, the building was to b....