COMMISSIONER OF INCOME TAX Vs. KAILASH MOTORS

JUDGEMENT

(1.) THIS is a reference under the Income-tax Act. Messrs. Kailash Motors, Dehradun, is the assessee. The assessment year is 1961-62.

(2.) THE assessee is a dealer in motor trucks. It has a factory for repairing and servicing trucks sold by it. THE cost of the land was Rs. 1,01,254. THE cost of the building constructed on this land was Rs. 1,01,102. THE total investment on land and superstructure came to Rs. 2,08,356. THE assessee claimed depreciation on the entire cost of Rs. 2,08,356 under Section 10(2)(vi) of the Indian Income-tax Act, 1922. THE Income-tax Officer was not agreeable to allow any depreciation on the cost of the land. He allowed depreciation on Rs. 1,01,102 representing the cost of the superstructure. This view was upheld in appeal by the Appellate Assistant Commissioner.

(3.) THIS point came up for consideration before the Supreme Court in Commissioner of Income-tax v. Alps Theatre, 1967 65 ITR 377; [1967] 1 S.C.R. 181 (S.C.).. It was held by the Supreme Court that the word "building" in Clause (vi) of Sub-section (2) of Section 10 of the Indian Income-tax Act, 1922, means superstructure and does not include the site.