M/s Chawla enterprises. Pvt.Ltd, Bhopal V. The ACIT Cir, 1, Bhopal

ITA 905/IND/1991

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9503 (ITAT-INDORE)
• Duration Of Justice: 19 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 04-10-1991
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KESHAV SAXENA
• Assessee Lawyers: B C JAIN
• Keywords: Depreciation; Question of law

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO.905/IND/1991 A.Y.1983-84 M/S CHAWLA ENTERPRISES (P) LTD. BHOPAL APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 1, BHOPAL RESPONDENT ITA NO.889/IND/1991 A.Y.1983-84 ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 1, BHOPAL APPELLANT VS M/S CHAWLA ENTERPRISES (P) LTD. BHOPAL RESPONDENT ASSESSEE BY : SHRI B.C. JAIN, CA RESPONDENT BY : SHRI KESHAV SAXENA, CIT DR ORDER U/S 260(1)OF THE INCOME TAX ACT, 1961 THIS ORDER IS PASSED TO GIVE EFFECT TO THE ORDER OF HONBLE HIGH COURT OF MADHYA PRADESH DATED 4.1.2011 IN THESE CAS ES, THE TRIBUNAL 2 HAD REFERRED THE FOLLOWING QUESTION OF LAW TO THE H ONBLE HIGH COURT OF MADHYA PRADESH FOR THEIR ESTEEMED OPINION WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE INCOME TAX APPELLATE TRIBUNAL WAS JUSTIFIED IN LAW IN HOLDING THAT DEPRECIATION AT THE RATE OF 15% SHALL BE ALLOWED ON THE HOTEL BUILDING OWNE D BY THE ASSESSEE ? 2. THE HONBLE HIGH COURT OF MADHYA PRADESH VIDE OR DER DATED 4.1.2011 IN ITR NO. 104/1995 HAS ANSWERED THE QUEST ION IN NEGATIVE, HOLDING THAT THE BUILDING USED FOR RUNNING OF A HOT EL OR CARRYING ON CINEMA BUSINESS CANNOT BE HELD TO BE PLANT. 3. IN VIEW OF THE ABOVE ORDER OF THE HONBLE HIGH C OURT, WE HOLD THAT THE BUILDING USED FOR RUNNING OF A HOTEL OR CARRYIN G ON CINEMA BUSINESS CANNOT BE HELD TO BE PLANT. PARA 4 OF THE ORDER OF TRIBUNAL (SUPRA) SHALL STAND SUBSTITUTED ACCORDINGLY. 4. WE, THEREFORE, DISMISS THE APPEAL OF THE ASSESSE E AND ALLOW THE APPEAL OF THE REVENUE. ORDER PRONOUNCED IN OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES OF BOTH THE SIDES ON 30 TH MARCH, 2011. (R.C.SHARMA) (JOGI NDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30 TH MARCH, 2011 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, G UARD FILE DN/- 3