| Case ID |
eb427e99-f559-45d0-ab33-3d57135d3bbc |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Court held that a question of law arose from the Tribunal's order regarding the classification of a hotel building as a plant and the allowance of depreciation at a higher rate. The Tribunal's decision was challenged, leading to the direction for the Appellate Tribunal to draw up a statement of the case and refer the question of legality of the Tribunal's decision to this Court. The application was allowed, affirming the Tribunal's ruling in favor of the revenue. |
| Summary |
In the case of Commissioner of Income Tax v. Tek Chand Dang & Co., the Allahabad High Court examined the issue of depreciation allowances under the Income-tax Act, 1961. The primary legal question centered around whether a hotel building could be classified as a plant, thereby qualifying for a higher rate of depreciation. The Tribunal had previously ruled in favor of this classification, prompting the Revenue to seek clarification from the High Court. The Court emphasized the importance of legal interpretation in tax matters, particularly concerning asset classification and depreciation rates. The decision underscored the Court's role in ensuring that tax laws are applied correctly and consistently, ultimately supporting the Tribunal's findings and reinforcing the legal framework surrounding depreciation allowances for businesses. This case highlights significant principles in tax law and the interpretation of statutory provisions regarding asset depreciation in the hospitality industry. |
| Court |
Allahabad High Court
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| Entities Involved |
Not available
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| Judges |
OM PRAKASH,
R.K. GULATI
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| Lawyers |
Bharatji Agrawal
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Tek Chand Dang & Co.
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| Citations |
1989 SLD 2209,
(1989) 176 ITR 544
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
32,
256
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