Law: Income Tax Act, 1961

Section: 32,32A

(a) Income-tax---Investment allowance---Hotel business ---Kitchen, store-room and equipment used for producing foodstuffs--Not entitled to investment allowance as there is no production of food materials in a hotel---Indian Income Tax Act, 1961, S.32A. Hotel business is not an industrial undertaking, engaged in the production of an article or thing as contemplated under section 32A of the Income Tax Act, 1961. The assessee is not entitled to investment allowance on the building housing the kitchen, store room and the equipment used for producing the food stuffs as there is no production or manufacture of food materials in a hotel. The assessee is not entitled to investment allowance on additions to plant and machinery. CIT v. Vrindavan Hotels (P.) Ltd. 2000 PTD 3674 fol. (b) Income-tax--- ----Depreciation---Hotel building is a "plant" ---Entitled to extra shift depreciation---Indian Income Tax Act, 1961, S.32. The hotel building is a plant. The hotel building is a plant and the assessee is entitled to extra shift depreciation allowance on it. East India Hotels Ltd. v. CIT 1997 PTD 1386 fol. CIT v. Hotel Luciya 1999 PTD 3690 fol. THIS JUDGMENT DELIVERED BY ARJIT PASAYAT, C.J.--- On an application under section 256(1) of the Income Tax Act, 1961 (in short "the Act"), the following questions have been referred for the opinion of this Court by the Income-tax Appellate Tribunal, Cochin Bench (hereinafter referred to as "the Tribunal"): (1) Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that the assessee is entitled to concessional rate of tax as is applicable to companies other than a trading or investment company? (2) Whether on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding: (i) hotel building is a plant? (ii) the equipment used in the kitchen and storeroom can be conceivably looked upon for the purpose of producing an article or thing? (iii) there is production of food materials in a hotel? (iv) The assessee is entitled to the investment allowance under section 32A of the Income-tax Act on the building housing the kitchen, storeroom and the equipments used for producing…

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