Section 32A — the law in short
What the courts have decided on section 32A, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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CIT v Karnataka Power Corporation
Supreme CourtHelps taxpayerValidity unconfirmed
My generating station building was designed and built so that the machinery cannot work without it. Is it a building or is it plant?
It can be plant. The Supreme Court dismissed the Revenue's appeal and held that where it is found as a fact that a building has been so planned and constructed as to serve the assessee's special technical requirements, it qualifies as plant. The Commissioner (Appeals) had found that the generating station building could not be separated from the machinery and that the machinery could not work without that special construction, and the Tribunal and the High Court had affirmed. The Court also confined Anand Theatres to buildings used as hotels or cinema theatres, holding that its observations will not always apply otherwise.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.