TaxTMI 
TaxTMI 
2009 (2) TMI 193
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....ny within the meaning of the definition used in section 2(7)(c) of the Finance Act, 1978, for the purpose of lower rate of tax?" 2. In reference petitions No. 39 of 1988, 40 of 1988 and 41 of 1988, at the instance of the Revenue, the Tribunal has referred the following question for opinion of this court : "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the hotel business is an industrial undertaking covered within the meaning of section 32A of the Income-tax Act ? (ii) Whether, on the facts and in the circumstances of the case the Tribunal was right in law in holding that the hotel building is plant for allowance of depreciation at higher rate ?" 3. The assessee is a privat....
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....ally always keeping the purpose of the enactment in view, the Finance Act, 1973, gives the definition of the term "industrial company" thus : "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining.' The clear object of the Act was to give concession in the rate of income-tax to manufacturing concerns. The concession was not intended to be given to trading concerns. The activity carried on by the assessee indicates that it essentially belonged to the latter category. It carries on trading activity. The Tribunal gave a wide meaning to the word 'processing'....
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....lled in the hotel. The court, dealing with section 32A(2), observed as under (page 232): "Sub-clause (iii) of clause (b) of sub-section (2) of section 32A provides that the plant and machinery referred to in sub-section (1) shall be the following which includes any new machinery or plant installed after March 31, 1976 : (i) for the purpose of business of generation or distribution of electricity or any other form of power; (ii) in a small scale industrial undertaking for the purposes of business of manufacture or production of any article or thing; (iii) in any other industrial undertaking for the purposes of business of construction, manufacture or production of any article or thing, not being an article or thing specified in t....
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.... has also an occasion to deal with similar question, which has been referred to this court, in the cause title CIT v. Lake Palace Hotels and Motels P. Ltd. [2001] 251 ITR 644, observed as under (page 655) : "We are also fortified in our conclusion in the context of section 32A of the Act by a recent decision of the Supreme Court in Indian Hotels Co. Ltd. v. ITO [2000] 245 ITR 538, wherein the court has held that the assessee who is carrying on a trading activity of business of a hotel cannot claim the benefit granted to an industrial undertaking by contending that it also produces foodstuff or food packets. In coming to this conclusion, the court has referred to the decisions in CIT v. Casino P. Ltd. [1973] 91 ITR 289 (Ker) CIT v. Berry'....
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....ude roads, bridges, culverts, wells and tube-wells. (2) In the case of CIT v. Taj Mahal Hotel [1971] 82 ITR 44, this court has observed that the business of a hotelier is carried on by adapting building or premises in suitable way, meaning thereby building for a hotel is not apparatus or adjunct for running of a hotel. The court did not proceed to hold that a building in which the hotel was run was itself a plant, otherwise the court would not have gone into the question whether the sanitary fittings used in bath room was plant. (3) For a building used for a hotel, specific provision is made granting additional depreciation under section 32(1)(v) of the Act. (4) IRC v. Barclay, Curle and Co. Ltd. [1970] 76 ITR 62, decided by the Ho....