Kerala H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the hotel run by the assessee was ‘plant’ entitled to depreciation at 15 per cent and investment allowance ?

T. L. VISWANATHA IYER ,J.:

The question which arose for decision before the Tribunal was whether the hotel run by the assessee was “plant” entitled to depreciation at 15per cent and to investment allowance. The Tribunal held against the Revenue. The application for reference has been rejected on the ground that the Madras Bench of the Tribunal had earlier refused to refer a similar question.

After hearing counsel for both sides, we are satisfied that there is a question of law arising in this case. The facts as such are not in dispute. The only question is whether the hotel will constitute a “plant” for the purpose of allowing depreciation. Thus, there is a pure question of law which has to be referred by the Tribunal under s. 256 (1 ).

We, therefore, allow the original petition. The Tribunal, Cochin Bench, is directed to draw up a statement of the case and to refer the following question of law for the opinion of this Court:

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the hotel run by the assessee was ‘plant’ entitled to depreciation at 15 per cent and investment allowance ? “

[Citation: 193 ITR 272]