COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH vs TAJ MAHAL HOTEL , . ( — 1976 PTD 105

Citation: 1976 PTD 105

Court: Supreme Court of India

Year: 1971

Decision Date: 1971-08-11

Parties: COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH vs TAJ MAHAL HOTEL , . (

Headnotes

Case cited as 1976 PTD 105

Judgment Text

Court Name: Supreme Court of India Judge(s): A. N. Grover, K. S. Hedge Title: COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH vs TAJ MAHAL HOTEL , . ( Case No.: Civil Appeal No, 1368 of 1968 Case Referred No, 68 of 1964 Date of Judgment:1971-08-11 Reported As: 1976 PTD 105 Result: Appeal dismissed JUDGMENT JUDGMENT ' A. N. GROVER, J.--This is an appeal by certificate from the judgment of the Andhra Pradesh High Court, in a case referred under section 66(1) of the Indian Income-tax Act, 1922 (hereinafter referred to as "the Act"). ' The respondent who is the assessee is a registered firm running a hotel at Secunderabad with branches at Sultan Bazar and King Kothi in Hyderabad. During the previous year ending 30th September, 1939, relating to the assessment year 1960-61, the assessee incurred an expenditure of Rs, 57,154 in installing sanitary fittings and of Rs, 1,370 for pipe-line fittings. The assessee claimed development rebate on these two items at the rate of 25 per cent. Under section 10(2) (vib) of the Act amounting in the aggregate to Rs, 14,629. The Income-tax Officer disallowed the claim. On appeal, the Appellate Assistant Commissioner upheld the disallowance. An appeal was taken to the Appellate Tribunal. The Tribunal rejected the appeal holding that the definition of "plant" must necessarily be the same, whether it was for claiming depreciation under section 10(2) (vi) or for development rebate under section 10(2) (vib). Accordingly, it was held that the sanitary and…

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