| The Tax Publishers2019 TaxPub(DT) 5899 (Del-Trib) INCOME TAX ACT, 1961
Section 32(1)
Golf course being the tool of assessee's business was a plant and as such, depreciation @ 25% was allowable on the same.
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Depreciation - Rate - Golf course, whether building or 'plant' -
Assessee was a company engaged, inter alia, in the business of running of golf course, construction of hotel and sale of merchandise. AO, after considering the entire material available on record, reiterated the findings given in original assessment and allowed depreciation on golf course @ 10% by treating the same as 'building'. CIT(A) upheld the order of the AO restricting depreciation on golf course @ 10%. Assessee submitted that claim of depreciation @ 25% had been allowed to the assessee in earlier as well subsequent assessment years.Held: The golf course owned and used by the assessee for the purpose of the business was a tool of the business of the assessee. It was functioning like a plant in case of the assessee. Further, it was not the case of the revenue that assessee had claimed any depreciation on the land. Golf course was a plant looking to the nature of business of the assessee. Appeal of the assessee was, therefore, allowed reversing the views of the lower authorities, holding that golf course is a plant on which assessee was entitled to the depreciation at the rate of 25% under the IT Act.
Followed:Dy. CIT v. J.P. Greens Ltd. ITA Number 3545-3547/Del/2009. Distinguished: (2014) 52 Taxmann.com 21 (Del) : 2014 TaxPub(DT) 4494 (Del-HC) and Moradabad Toll Road Co. Ltd. v. Asstt. CIT.
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FAVOUR : In assessee's favour.
A.Y. : 2001-02 to 2011-12
INCOME TAX ACT, 1961
Section 37(1)
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