Assessee-company claimed depreciation on LED video display boards - Assessing Officer disallowed said claim - Commissioner (Appeals) held that LED video display boards were purely temporary structures and therefore, assessee was entitled to 100 per cent depreciation - Whether since structure could not be re-used and said structures were put on land not belonging to assessee, order of Commissioner (Appeals) could not be interfered with - Held, yes

Selvel Advertising (P.) Ltd[2015] 58 taxmann.com 196 (Kolkata - Trib.)JANUARY  1, 2015 CIT v. Madras Auto Service (P.) Ltd. [1998] 233 ITR 468/99 Taxman 575 (SC) (para 15) followed

LED video display boards are temporary structures and they cannot be equated with plant and machinery for the reason that these structures are displayed outside in temporary locations and on land taken on lease for a temporary period. Once you dismantle these temporary structures, it will reduce its value to almost nil and it cannot be used second time or third time and life span of LED video display boards is also not more than 6 months to 1 year. The land is neither owned by the assessee nor it is held by the assessee on lease basis. The structures put on such land, whatever in nature, are purely temporary structures. Even some-times, these structures are not taken by the assessee for reuse again. When such structures are put on land not belonging to the assessee, the expenditure is held to be the nature of revenue in view of the judgment of the hon'ble Supreme Court in the case of CIT v. Madras Auto Service (P.) Ltd. [1998] 233 ITR 468/99 Taxman 575. In view of the above, we confirm the order of the Commissioner of Income-tax (Appeals) and this issue of the Revenue's appeal is dismissed.