What is disclosed is a novel system and method for simultaneous spectral decomposition suitable for image object identification and categorization for scenes and objects under analysis. The present system captures different spectral planes simultaneously using a Fabry-Perot multi-filter grid each tuned to a specific wavelength. A method for classifying pixels in the captured image is provided. The present system and method finds its uses in a wide array of applications such as, for example, occupancy detection in a transportation management system and in medical imaging and diagnosis for healthcare management. The teachings hereof further find their uses in other applications where there is a need to capture a two dimensional view of a scene and decompose the scene into its spectral bands such that objects in the image can be appropriately identified.