Law:

Section:

Section 32(1)(ii) of the Income-tax A ct, 1961 read with rule 5(1) and appendix I of the Income-tax Rules, 1962 -Depreciation - Allowance/rate of - Whether roads constructed within race course premises of assessee-turf club could be considered to be 'building' within the meaning of section 32(1)(ii) so as to be eligible for depreciation in respect of capital expenditure thereon - Held, yes Words and phrases - 'Building' used in section 32(1)(ii) of the income-tax act, 1961 Facts The assessee-turf club spent a certain amount on asphalting of roads within its race course premises and claimed the same as revenue expenditure, but the ITO disallowed part of it as capital expenditure. On appeal, the Commissioner (Appeals) upheld the disallowance but allowed depreciation in respect of the capital portion. The Tribunal confirmed the order of the Commissioner (Appeals). On reference, the revenue contended that the roads could not be considered to be buildings within the meaning of section 32(1)(ii) and rule 5 so as to be eligible for depreciation. Held The road in the instant case had been laid in the proximity of the building belonging to the assessee and it was meant to provide access to the race course and. other buildings within the compound. Such roads could properly fall within the meaning of the word 'building'. The Tribunal was, therefore, correct in allowing depreciation on the same. Case review CIT v. Colour-Chem. Ltd. [1977] 106 ITR 323 (Bom.), CIT v. Lucas-T.V.S. Ltd. (No. 2) [1977] 110 ITR 346 (Mad.),Hukamchand Mills Ltd. v. CIT [1978] 114 ITR 870 (Bom.), Panyam Cements & Mineral Industries Ltd. v. Addl. CIT[1979] 117 ITR 770 (AP) and CIT v. Kalyani Spg. Mills Ltd. [1981] 128 ITR 279 (Cal.) followed. CIT v. Alps Theatre[1967] 65 ITR 377 (SC) distinguished. Cases referred to CIT v. Colour-Chem Ltd. [1977] 106 ITR 323 (Bom.), CIT v. Kalyani Spg. Mills Ltd. [1981] 128 ITR 279 (Cal.), CIT v.Lucas-TVS Ltd. (No. 2) [1977] 110 ITR 346 (Mad.), Hukamchand Mills Ltd. v. CIT [1978] 114 ITR 870 (Bom.), Panyam Cements & Mineral Industries Ltd. v. Addl. CIT [1979] 117 ITR 770 (AP) and CIT v. Alps Theatre [1967] 65 ITR 377 (SC). IT REFERRED CASE NO. 142 OF 1982.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492