COMMISSIONER OF INCOME TAX-II, HYDERABAD vs. M/s. Sri Ramanjaneya Poultry Farm Private Limited,

This Income Tax Tribunal Appeal is filed under Section 260-A of the Income Tax Act, 1961 (“the Act”), against the order dated 26.04.2006 in I.T.A. No.828/Hyd/2004 on the file of the Income Tax Tribunal, Hyderabad.

The following substantial question of law was raised in this appeal for consideration. “Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in directing grant of depreciation at the rate 25% by treating the structures erected for poultry and hatchery business as plant?”

At the time of hearing, the learned counsel for the appellant submitted that the respondent company is engaged in the business of poultry farming. It has been filing its return of income regularly. The said company has certain sheds to keep the birds. The appellant considered the poultry sheds as ‘plant’ and depreciation @ 25% was claimed and the same was also allowed by the Assessing Officer. Subsequently, the assessments for the three years were reopened only on the issue of depreciation to be allowed on the poultry sheds. The Assessing Officer has considered the poultry sheds to be ‘building’ for the purposes of deprecation and, accordingly, allowed depreciation @ 10% per annum. The respondent relied on a decision of Madhya Pradesh High Court in the case of Ramdev Tiles Vs. CIT, but the same was not accepted by the assessing officer. As no detailed discussion is available in the order for such disagreement, the respondent filed appeal on that single ground against the very